It has been noted since 2016 that the stock market has provided greater returns than gold and real estate. And this has not escaped the attention of Indian investors. On top of that, the easy accessibility of Demat and trading account made trading in the stock market a whole lot easier. A Demat account makes it convenient to store the shares in paperless, dematerialized form while trading account helps in buying and selling stocks quickly.
As per the Securities & Exchange Board of India (SEBI), around 4.9 million Demat accounts have been opened so far. This is the highest Demat account opening in at least a decade. Meanwhile, only 4 million accounts were opened last year. In the light of COVID-19 pandemic, the enthusiasm of retail investors hasn’t slighted. In fact, many young investors have shown huge interest in the stock market and opening Demat account for stock investing. Some entrants open multiple Demat accounts in the beginning. Later on, they regret their decisions and were forced to transfer their shares and other securities from one Demat account to another.
With this article, we aim to assist the investors in transferring shares from one Demat account to another Demat account.
Let’s find out!
The transfer of shares from one Demat to another can be done in two ways:
- Online transfer
- Offline transfer
To transfer shares online, follow the procedure given below:
- Visit the Central Depository Services Limited (CDSL) website. Website: CDSL – Central Depository Services (India) Limited (cdslindia.com)
- Click on the “Register Online” link and then fill the form with the required details.
- After completion, take a print of the form.
- Once the form is printed, it will be transferred to the Depository Participant (DP).
- The DP will first verify the form. On successful verification, you will receive a password on your registered email address.
- With the password, the account holder can log in and begin the process of transfer of shares.
To transfer the shares via the offline method, you would be required with a Delivery Information Slip (DIS) from your depository participant. The DIS comprises of some mandatory information that must be duly completed to commence the transfer of shares from one Demat account to another.
However, the Delivery Information Slip (DIS) booklet would not be required in case both Demat accounts are in same depositories. In this case, the transfer would be called intra-depository transfer.
If both accounts are with separate depositories then the DIS booklet is needed for inter-depository transfer. So, first, collect the DIS booklet from your DP. And put down the names and ISIN (International Securities Identification Number) of the shares or other securities that you need to transfer.
Note: ISIN is a 12-digit code that validates the identity of financial securities.
Put down the Target Client ID – a 16-character code that combines the client’s ID with the DP’s ID. Once done, select the mode of transfer – Intra-Depository Transfer or Inter-Depository Transfer.
Finally, submit the DIS form to your existing broker, and in return collect an acknowledgement receipt from the broker.
One Reply to “How to Transfer Shares from One Demat Account to Another?”
Transfer Shares from One Demat Account to another, its now simple. Thanks for writing this nice article on it. Dealmoney Securities also provide you various financial investing platforms and creating easy & free Trading & demat accounts in India.