As an investor, it is very important to have a demat account to invest money in the stock market. Without a demat amount, they cannot buy or trade shares. Trading through demat account functions similar to a bank account, the only difference is that it transfers shares through a demat amount instead of cash. But if investors want to transfer all their shares to one Demat account, then they have that option too. On transferring of share from one demat account to another, the ownership will remain the same, it means that there is no tax implication, therefore no transaction implication as well.
Know-How to Transfer Shares from one demat account to another?
Two ways that can follow to transfer shares from one demat account to another,
1. Transfer Manually
2. Transfer Online
Manually transfer Shares from One Demat Account to Another
Shares can be transferred manually. Here is the process to transfer shares from one demat account to another offline.
When an Investor opens a Demat Account with a stock broker, he gets a delivery instruction slip (DIS) along with a welcome kit. The investor has to fill out the form or slip while applying offline. Here is the main topic that needs to be noticed while filling in the details :
●Target Client ID: A 16 digits identification number or ISIN is 12 digits long. It is basically the broker’s ID, also known as Beneficiary Owner ID (BO ID).
●ISIN: International Security Identification Number along with 12 digits. It helps in identifying securities like, stocks, equities, notes bonds, funds, etc. In the slip, it should be mentioned along with the details of shares with the quantity.
●DP Name: Depository name or stock broker name must be mentioned.
●Inter Depository: If an investor wants to transfer a share from one demat to another this blank need to be filled up.
●Off Market: For carrying out the transfer of shares within the same depository, this space needs to be filled up.
After filling in all the required information and the investor signing the DIS, the following are the final steps that need to be followed:
1. Investor signs the DIS with the same signature that he put with their existing broker when opening the Demat Account.
2. Investor submits the DIS to the existing brokerage company. They will issue an acknowledgment slip to the investor.
3. After this entire procedure, the broker requires some days to transfer the share to the investor’s demat account with the new broker.
Online transfer shares from one demat account to another:
Central Depository Security Limited (CDSL) has a feature called EASIEST and National Security Depository Limited (NSDL) has a feature called SPEED-E, through this an investor can transfer shares from one demat account to another online, for this you have to follow the steps given below,
●Login to the CDSL website or NDSL website
●Click on the Register Online Link
●Choose the EASIEST option for CDSL and the SPEED-E option for NDSL.
●Enter the details, take a printout of it, and send it to your depository Participant ( DP ).
●DP will send it to the Central Depository, who will verify all the details.
●After 2-3 days you will receive the login credential in your mail.
●By logging in, you can see the list of brokers.
Conclusion
In conclusion how to transfer shares from one demat to another as investor frequently operate their demat account while buying and selling shares. An Investor can shift their share from one demat account to another. For this, there are two ways to transfer shares from one demat to another and they are Transfer Manually, Transfer Online. In Transfer manually there are few steps that need to be follow same for the Transfer Online. It also includes some steps such as logging in through CDSL and NDSL with their feature SPEED-E ( for NDSL), EASIET For ( CDSL) all the steps are mentioned. We hope all the questions regarding how to transfer shares from one demat account to another have been answered.
