An investor may need to transfer shares from one account to another for a variety of reasons. The following are some possible explanations:
To consolidate all of the shares under one roof for easier management.
Another reason could be the investor’s desire to switch to a new depository participant that provides better returns at a lower cost.
Many shareholders may choose to transfer shares from one Demat account to another if they had a bad experience with their previous broker.
People transfer shares because they want to experiment with different types of investments in share market or for different time periods, or because they want to switch from a discount broker to a full-service broker.
In brief, the process of transferring shares from one Demat account to another is outlined below.
Step 1: The investor completes the DIS (Delivery Instruction Slip) and submits it to his or her current broker.
Step 2: The broker transmits the DIS form or request to the depository.
Step 3: Your existing shares will be transferred to the Demat account by the Depository.
Step 4: Once all of the shares have been transferred, they will appear in the investor’s new Demat account.
Online Transferring of Shares to another Demat account:
Shares can be transferred online from one Demat account to another. The steps below provide an overview of the procedure.
By clicking on the “Register Online” button on the CDSL or NSDL website, the investor must register his name.
The next step is to choose an option for a facility called “Easiest- electronic access to securities information and secure transaction execution.”
Following that, the investor must provide his information.
After completing the form, the investor can print it and deliver it to the Depository Participant.
The DP then oversees the rest of the proceedings. He checks the form that the investor filled out.
Once the investor’s authenticity is confirmed, he or she will receive an email to his or her registered email address.
He or she can use the password to log in to the account and begin transferring shares on his or her own.
Offline Transferring of Shares to another Demat account:
Shares can also be manually transferred. The transfer of shares from one Demat account to another is done offline in this case. When an investor opens a Demat account with a stockbroker, he is given a delivery instruction slip, also known as a DIS, as part of the welcome kit. When applying offline, the investor must complete a form or slip. While filling out the details, keep the following fields in mind:
Target Client ID:
A 16-digit identification number is assigned to the investor. It is the ID of the broker, also known as the Beneficiary Owner ID (BO ID)
International Securities Identification Number, or ISIN for short, is a 12-digit number. It aids in the identification of securities such as stocks, equities, notes, bonds, funds, and so on. It should be noted on the slip, along with the details of the shares and the amount.
The stockbroker’s or Depository Participant’s name must be mentioned here.
This field must be completed if the investor wishes to transfer shares from one depository to another.
This space is reserved for transferring shares within the same depository.
Following the completion of all required information and the signature of the successful investor on the DIS, the following steps are taken:
The investor submits a signed DIS to his or her current broker.
The investor should obtain the DIS acknowledgement receipt from the broker.
Following that, the broker will need a few days to transfer the shares to the investor’s new broker’s Demat account.
Charges for transfer of shares from one demat to another:
The charges for transferring shares from one Demat to another varies with different stock brokers. To know the exact amount, you have to contact your current stockbroker. However, if you decide to close the demat account with your existing stockbroker, the process is free of cost. At Tradeplus, we offer free Demat account opening. When you trade with us, you can save money on opening a Demat account.