How To Transfer Shares From One Demat Account To Another

An investor should lookout for a new brokerage firm if his/her requirements change. But the process involved in transferring shares from a brokerage account to another may discourage the investor. The good news is that it is not a long process and you can transfer shares to a brokerage account online also. Before discussing the process, let’s find out why an investor needs to transfer shares to another brokerage account and the process of opening a new Demat account:

How To Open Demat Account?

If you are looking to know that how to open Demat account then You can open it with a stockbroker who is registered with CDSL or NSDL.

Reasons to Transfer Shares 

There are multiple factors that an investor senses the need of transferring shares from one Demat account to another. Some of the common reasons are as follows:

 

1. Switch from Current Broker 

You may want to switch from your current broker to another broker. The reason to opt for another broker may be a lower brokerage, better services in terms of pricing, brokerage and even new platforms with enhanced security and trading facilities.

 

2. Consolidation 

You may have multiple Demat accounts and some of them are idle. You can consolidate all the shares in a single Demat account. It will lower the total Demat account charges tied up in the maintenance of idle accounts.

 

3. Different Demat Accounts for Different Shares 

Just opposite to consolidate, you may want to categorize and separate the shares based on the goals to be fulfilled using them such as retirement corpus or children’s marriage etc. 

Or you may want to keep different Demat accounts for trading activities and investment portfolios. 

The Types of Transfer

There are two national depositories in India to keep the custody of your shares: NSDL and CDSL. When you open a Demat account with your broker, you choose whether to have a Demat account with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). 

Both depositories follow two types of transfer:

1. Intra-depository Transfer: When the transfer is within a depository itself.

 

2. Inter-depository Transfer: When the transfer is from one depository to another.

The Method

There are two ways to transfer shares from one Demat account to another 

  1. Manual transfer (Off market transfer)

  2. Online transfer

Manual transfer 

The Depository Participant provides Debit Instruction Slip (DIS) booklet to be filled in by the Demat account holder. The following are the important details to be filled by the Demat account holder:

1. Names of the securities and ISIN 

Mention the name of securities to be transferred and their International securities identification number (ISIN). It is a 12-digit code that identifies securities.

 

2. Beneficiary owner ID

It is the unique ID of the target client containing 16-digits. 

 

3. Mention the type of transfer clearly

Intra-depository or an off-market transfer or Inter-depository. Take care while selecting the type of transfer.

 

Sign the filled-in DIS slip and submit to the current broker and collect its acknowledgment receipt. The sign must be exactly the same as the one in the database of the DP. Within 3-5 business days, the shares from the old Demat account will be transferred to the new broker.  

Online Transfer:

The account holder needs to register at the CDSL website called  EASIEST (Electronic Access to Securities Information and Execution of Secured Transactions) and submit the form to the DP. The DP will verify the account holder and allow the client to make their own future transfers. 

Steps to register with EASIEST

 

Step 1. Visit the CDSL Website and click on the ‘Login’.

Step 2. Select New System Myeasi (BO/CM/DP/Issuer/DDP), then new easiest registration and fill in the Demat Details, Account Details like DP ID, Client ID, Email-Id, etc. and submit.

Step 3. Print the form and submit it to your current depository participant (DP).

Step 4. The DP will further submit it to the central depository to verify your details. 

Step 5. After successful verification, you will be provided the password through email.

Step 6. Now login using the provided password and you can transfer your shares from one broker to another. 

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