A demat account is used to store shares and other securities. As an investor one can open multiple demat accounts as long as they are opened with different depository participants. There is no limitation to an investor to open demat accounts. However, it can be difficult if an investor opens multiple demat accounts to keep tabs on all accounts. If that’s the case, the investors can transfer all their shares to a single demat account.
Types of Transfers
There are two types of transfers that can happen to securities.
- Intra depository transfer
This transfer is done when both demat accounts are in the same depository. Share are transferred within the same depository and are done of the market
- Inter depository transfer
This transfer is done when shares are in a different depository i.e. from either the National Securities Depository Limited (NSDL) to the Central Depository Services Limited (CDSL) or vice versa.
Transferring shares from one demat account to another is a relatively simple process that can be done in just a few steps. The process of transferring shares involves transferring ownership of the shares from one demat account to another, and typically involves the following steps:
Steps to Conduct the Transfer
Obtain an transfer request form:
The first step in transferring shares is to obtain a transfer request form from the depository participant (DP) of the demat account you wish to transfer the shares from. The transfer request form is usually available online on the DP’s website or can be obtained in person from a branch office.
Fill out the transfer request form:
Once you have obtained the transfer request form, you need to fill it out completely and accurately. You will need to provide information such as your name, demat account number, the name of the recipient demat account, and the number of shares you wish to transfer.
Submit the transfer request form:
After you have completed and signed the transfer request form, you need to submit it to your DP along with a photocopy of your identity proof, PAN card and any other required documents. You may also be required to pay a nominal fee for the transfer.
Initiate the transfer process:
After the DP has received your transfer request form and all the required documents, they will initiate the transfer process. This usually involves verifying the details on the transfer request form, checking the availability of the shares in your demat account, and verifying the identity of the recipient demat account.
Approval of the transfer:
Once the DP has completed the verification process, they will approve the transfer and notify both the sender and recipient demat accounts. The shares will then be transferred from the sender demat account to the recipient demat account.
Confirmation of transfer
After the transfer has been completed, both the sender and recipient demat accounts will receive a confirmation of the transfer. You can check the status of the transfer by logging into your demat account or by contacting your DP.
Update your records:
Once the transfer has been completed, it’s important to update your records to reflect the change in ownership. You should also keep a record of the transfer for future reference.
Along with this offline process investors can do the whale process online as well. By visiting the CDSL website. There’s a “Transaction Tab” once you log into the CDSL Easi/Easiest. From there you can go into the “Bulk Setup” option, where you enter multiple details and then click on submit. Once you verify and click on “Commit”
You enter your 8 digit alphanumeric PIN with the process then being completed.
When you want to transfer shares, you need to be aware of the following. The entire transfer procedure requires some time. About 3 to 5 business days are needed to complete the process. Make sure not to lose patience. The DP may alter the charge in addition to the time frame for the transfer of these shares. It’s better to be aware of it than to be caught off guard.
In conclusion, transferring shares from one demat account to another is a straightforward process that can be completed in a few simple steps. By following these steps, you can easily transfer ownership of your shares from one demat account to another, ensuring that your investments are secure and up-to-date. If you have any questions or concerns about transferring shares, reach out to your DP for assistance and use the demat app to do so.