Why do people need to transfer shares from one demat account to another?
We might need to at times transfer our shares from one demat account to another. There are various reasons why people need to transfer shares and the most common one of them is when they change their brokers. A person might have multiple demat accounts, which they might need to bring together and merge. This is again one of the most important reasons why people choose to transfer shares from one demat account to another.
What are the different modes of transfer?
There are mainly two modes through which transfer of shares can take place from one account to another. One can be done online and the other can be done offline. Both the processes have their own mode of operation. You can find out about how the two modes of transfer work and then based on your preference and convenience you can take your pick! So, let us find out how the two processes work in a nutshell, so that when you do finally take a decision, you can take an informed one.
Online mode of transfer of shares from one demat account to another
Online transfers are gradually becoming the preferred mode of transfer these days, because it is easy and can be done in no time. However, there are some basic steps that one needs to follow in order for the transfer to be take place smoothly.
- The first thing that you will have to do is visit the website of the Central Depository Services Limited, where this online transfer of shares can take place.
- The first step would be for the account holder to register themselves with the website.
- After the registration process is completed, account holders will have to fill up a form which they will have to get approved by the Depository Participant or the DP.
- Once the verification step is completed by the DP, the account holder will get a password in their registered email id.
- Now using the password, the account holder will be able to access his accounts and transfer shares from one demat account to another.
Offline mode of transfer of shares from one demat account to another
The offline mode of transfer is a lengthier process and there are a few things that you will need to keep ready at hand for an effective transfer of shares. You will need to know your International Securities Identification Number or ISIN. The ISIN is basically a 12 digit number which can be used to track and recognize various forms of securities.
- The first thing that you will have to do for an effective offline transfer is to make sure that you have a note of all the share details that you wish to transfer.
- The second step involves recording the Target Client ID. It is again another code which is 16 digits long and it contains IDs of both the client as well as the DP.
- The next step of the process in filling up the form is selecting the method of transfer that you wish to go for. Transfers can take place in intra-depositary way or through means of off-market transfer.
- Once you have completed filling up the DIS slip, you will have to sign it and give to your broker.
- Collect the receipt from the broker. Now it is up to the broker to take care of the transfer of shares. Generally, this process is will take around 4-5 days. The broker might take some additional fees for his services.
All said and done, if you are looking to reap the greatest benefits out of your investments, it’s time to open a demat account online if you haven’t already!