Transferring Securities to a different Demat Account
Dematerialization or Demat means converting physical share certificates into electronic form. This process has made trading in securities more efficient, transparent, and secure. In India, Demat accounts are managed by depository participants (DPs) who act as intermediaries between the investors and the depositories.
Published on 05 April 2023
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Sometimes, investors may need to transfer their securities from one Demat account to another. This can happen for various reasons, such as consolidation of accounts, change in DP, or a need to segregate investments. This blog will discuss transferring securities from one Demat account to another.
Step-by-Step Guide to Transfer Securities to a Different Demat Account:
The securities can be transferred to different Demat Accounts in 2 ways:
Manual Transfer
Online Transfer
Manual Transfer:
To manually transfer your securities to a different Demat Account, simply follow these steps:
Obtain the Delivery Instruction Slip (DIS) from your current DP: The DIS is a physical form that transfers securities from one Demat account to another. You can obtain this form from your current DP. The form will contain details such as your name, DP ID, client ID, and the securities to be transferred.
Fill up the DIS: Once you have obtained the DIS, fill it in with the required details. Fill out the form correctly to avoid any errors or delays in the transfer process.
Submit the DIS to Your Current DP: Once you have filled up the DIS, submit it to your current DP. The DP will verify the details and process the transfer request.
Wait for the Transfer to be Completed: The transfer process can take a few days to complete, depending on various factors such as the type of securities being transferred, the depository involved, and the workload of the DPs. You can track the transfer request status by contacting your current DP.
Confirm the Transfer With the Receiving DP: Once the transfer is completed, contact the receiving DP to confirm that the securities have been credited to your new Demat account.
Online Transfer
Digitalization has revolutionized everything around the world to ease human life. The same goes with Demat Account. Now you can open a Demat account online or transfer it online, and all you need to do is follow the simple steps given below.
Step 1 - Registration for Easiest on CDSL
Go to cdslindia.com and click “Login to-New system Myeasi (BO/CM)" to register for the easiest.
Enter your Client ID and DP ID. The first eight digits of your Demat number are the same as your DP-ID, and the next eight are the same as your Client ID.
Enter the OTP received on your registered mobile number and click on Continue to proceed.
Fill in the necessary details and then select the account type ‘Trusted Account (PIN) to continue.
Enter your Trusted account details. Trusted means details of the broker to which you are transferring the shares. So here, you are required to enter your Demat account number. You can find it in the CMR copy sent to you.
The registration is now complete. You will receive your login credentials – Login ID, password, and PIN.
Step 2 - Login To CDSL Easiest and Transfer
Use the credentials received in the mail to log in to CDSL Easiest.
After login, click on the tab Transaction and select Setup for transferring stocks through Easiest.
In Transaction, Setup, select the Bulk Setup option.
Select the “+” icon to add the ISIN, quantity, and reason for transfer off-market details, and click submit.
On verification, select the option for COMMIT & enter the OTP PIN received on your registered mobile no.
After entering OTP, the Off-Market Transaction request will be completed from your end and needs to be authenticated by Demat Account Provider.
Now You can see your external holdings on the dashboard where you have transferred the securities.
Important Points to Remember
Before initiating the transfer process, ensure you have sufficient securities in your current Demat account.
Ensure that the details provided in the DIS and CDSL are accurate and match those in your current Demat account.
Submitting the transfer request well in advance is advisable to avoid any delays.
Keep a record of the transfer request, including the DIS number, submission date, and the name of the DPs involved.
Conclusion
Transfer of securities from one Demat account to another is a simple process that requires patience. By following the above steps and considering the critical points, investors can quickly transfer their securities to the Preferred Demat account. It is always advisable to consult with a financial advisor at Espresso before making investment decisions or opening a Demat account in India.
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The stock market has witnessed a fascinating evolution. From close to a hundred years of traders ardently shouting on the trading floors to buy and sell shares, the capital market has become more accessible to investors with the introduction of a demat account in India.
Whether it is to hold, buy, or sell shares in the capital market, an investor needs to open a Demat account and a trading account with their chosen depository participant (DP). A Demat account allows investors to hold their shares and securities. For trading in India, however, an investor needs to open a trading account first. Before they begin trading in India, every investor needs to acquaint themselves with the different types of trading accounts and the types of Demat accounts that are catered to address the varied demands of the investors.
In India, a Demat account can be opened with a depository participant (DP). The National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL) are the two depositories in India that offer depository services to market participants. These depositories have multiple depository participants that offer Demat accounts to people.
Yes, all types of securities can be transferred successfully from one Demat Account to another. This can be done both manually and digitally.
No such documents are needed for transfer of securities. Only a Delivery Instruction Slip is needed for manual transfers of securities.
There are no fees or charges for transferring your securities from one account to another. This facility is provided for free.
The transfer of securities can take a few days to be processed, depending on factors such as type of securities, depository involved and workload of the DPs.
Related Articles
How Does Demat Account Work?
The stock market has witnessed a fascinating evolution. From close to a hundred years of traders ardently shouting on the trading floors to buy and sell shares, the capital market has become more accessible to investors with the introduction of a demat account in India.
Whether it is to hold, buy, or sell shares in the capital market, an investor needs to open a Demat account and a trading account with their chosen depository participant (DP). A Demat account allows investors to hold their shares and securities. For trading in India, however, an investor needs to open a trading account first. Before they begin trading in India, every investor needs to acquaint themselves with the different types of trading accounts and the types of Demat accounts that are catered to address the varied demands of the investors.
In India, a Demat account can be opened with a depository participant (DP). The National Securities Depository Limited (NSDL) and the Central Depository Services (India) Limited (CDSL) are the two depositories in India that offer depository services to market participants. These depositories have multiple depository participants that offer Demat accounts to people.
Yes, all types of securities can be transferred successfully from one Demat Account to another. This can be done both manually and digitally.
No such documents are needed for transfer of securities. Only a Delivery Instruction Slip is needed for manual transfers of securities.
There are no fees or charges for transferring your securities from one account to another. This facility is provided for free.
The transfer of securities can take a few days to be processed, depending on factors such as type of securities, depository involved and workload of the DPs.
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