How to transfer shares from 1 Demat Account to Another

Have you ever wondered about transferring your shares from one demat account to another? Though it seems to involve too many complicated formalities, is a fairly simple process. It is almost on the lines of making a transfer among different bank accounts. Most people prefer to keep the shares in a dematerialized form today and convenience and ease are the main reasons for doing so. Inter and intra-depository transfers too are done smoothly and without any hassles by having shares in demat form.

Reasons for transfer

There are multiple reasons to transfer the shares, but the most common reason is either consolidation or diversification of their investments and trading activities among different brokers and depository participants (DPs). Some may even transfer for getting better brokerage options from among the different players. Getting better facilities in terms of exposure limits and investment analytics from expert advisors are also among reasons for transfer. There are instances wherein people prefer keeping their long-term investments in a particular demat account and trading activities in another.

Modes of transfer

There are particularly two modes of transfer, online and offline, to transfer shares from your demat account. You can have a look at how these modes work separately and select the best one as per your convenience.

Offline mode to transfer shares from your demat account

It is the traditional method of transferring your shares and is a lengthy process. Certain information needs to be known beforehand while you make an offline transfer of your shares. The following is a list of it:

  • Note the International Securities Identification Number (ISIN), a 12-digit code used to identify securities such as funds, equities, bonds, stocks, debts, and more
  • Next is to obtain the Target Client ID where you wish to open demat account and get your securities transferred. It is a 16-digit code which contains details about the DP and your client ID as well
  • Then you fill the Delivery Instruction Slip (DIS) mentioning all the necessary details in full; this needs to be duly signed by the transferor and submitted to the broker
  • Now to sit back and relax; your broker will do the necessary formalities and get your desired securities transferred to your new online demat account

Online mode to transfer shares from your demat account

We are a generation that lives in an e-bubble, where everything is online. Transferring shares from your online demat account is keeping up with the changing times. You just need to follow the below-mentioned steps:

  • Get yourself registered with the CDSL using their EASIEST feature
  • Fill in the details pertaining to the shares to be transferred to and from your demat account
  • The details filled in above have to be printed and submitted to your DP for verification
  • On successful verification, the account holder will get a password on their registered email ID
  • Using such login credentials, the shares can be transferred from your demat account

Tax implications on such transferred shares need not be worried about as the shares still belong to you. They shall attract capital gains tax from their original purchase date. Now that you are aware about the process for share transfer, you can open demat account afresh and begin your investment adventures for wealth creation. Happy Investing!

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