How To Transfer Shares From One Demat Account To Another?

0
148

An investor can have one or multiple Demat accounts to hold his/her financial securities. They can transfer their securities from one Demat to another easily. Some of the reasons to make such transfers are reduction in Demat costs, the requirement of more or fewer services, separate Demat for trading and investing activities, differentiating investments with different investing purposes, etc. Let us find out how to transfer shares from one Demat account to another.

Modes of Transferring Securities

.

Securities can be transferred online and offline as well. Both ways are explained here. You can choose one mode as per your convenience.

.

As you know, there are two national depositories in India,

.

The Central Depository Services India Limited (CDSL)
The National Securities Depository Limited (NSDL)

.

So, there are two types of securities transfer

.

1.Inter Depository – when securities are transferred from one depository to another.
2.Intra Depository – when securities are transferred within the same depository.

Online Transfer

.

Following are the steps to be followed to transfer securities online from one Demat to Demat:

.

Step 1: Simply register at any of the National Depositories’ official website.

.

For CDSL at ‘EASIEST’ Facility

.

Go to https://web.cdslindia.com/myeasi/home/login
Click on the ‘Easiest Registration’.
Enter details of your Demat account details i.e. Broker ID, Client ID, email ID etc, and OTP for verification.

.

For NSDL ‘Speed-e’ Facility

Go to https://eservices.nsdl.com
Click on ‘New User Registration’ in the left panel.
Select Speed-e
And register. You will be redirected to the registration request form.

.

Step 2: You need to submit the duly filled-in registration form and the latest Transaction Statement in-person to your broker.

.

Step 3: Your broker will authorize your request further with the central depository and after successful verification, you will be able to operate your SPEED-e account using User-Id and Password. In the case of a joint account, you need to submit a Power of Attorney in favor of anyone’s account holder.

Offline Transfer

.

Following are the steps to transfer shares offline/manually

.

Step 1: Collect a Debit Instruction Slip (DIS) booklet from your brokerage firm where you are registered.

.

Step 2: Fill the ISIN number of the shares that you want to transfer from Demat to another, Target Client ID.

.

ISIN [International Securities Identification Number] is a 12 digit code to validate the ID of your financial securities.

.

Target Client ID is a 16 digit code. It is the combination of the client’s ID and the broker’s ID.

.

Step 3: Select the mode of transfer.

.

Select Intra-Depository or Off-market transfer if both the brokers – the existing one with which you own a Demat and the new one with which you are transferring shares – are registered with the same national depository.
Select Inter-Depository transfer if both brokers are registered with different national depositories.

.

Step 4: Submit this DIS form to your existing broker and get an acknowledgment receipt from him. The transfer will be completed within 3 to 5 days.

How to Open Demat Account  

If you are wondering how to open a Demat account, then you must know that it is a very easy process. You can open Bajaj Financial Securities Limited Trading (BFSL) Account free of cost. BFSL also offers low-cost brokerage solutions that help you maximize your profits from trading. You will need a Pan card, address proof, bank details, income proof, signature on white paper, and passport size photo in digital form so that you can upload these while filling the online Demat application.

.

It’s a 100% digital process for seamless trading on the web and app. You need not visit a branch for verification of documents and activation of your Demat account.

Taxation

.

When you want to transfer your shares, that is in your own name, from one broker to another, you need to pay any tax because the ownership of shares is not changing but you need to pay a nomination fee to your broker for his services. On the other hand, if you want to transfer shares’ ownership to another person, for example, your parents, spouse, or children, you need to submit your request with a legally valid reason for doing so. In this case, capital gain taxes will be applicable. If you want to avoid taxes, support this share transfer with a gift deed.

Leave a reply

Please enter your comment!
Please enter your name here