In India, you’re allowed to hold more than one demat account. In fact, a large number of retail traders possess more than one demat account. That said, there’s a huge downside to this. Keeping track of all of your securities and investments can get quite hard due to having multiple accounts.
But the good news is that you can consolidate all of the securities that you hold in multiple demat accounts to just one online Demat account. How, you ask? By transferring the shares. Wondering how to transfer shares from one demat account to another? Here’s some information that can help you out.
- Can you transfer shares from one demat account to another?
Of course. A demat account is like a bank account. You can transfer the shares and other securities from one account to another. However, in order to do that, you need to use a special instrument known as the Delivery Instruction Slip (DIS).
The DIS is basically a piece of document that allows you to transfer shares from one demat to another. Think of it like a cheque leaf. You’re required to specify details of the shares and securities that you wish to transfer and the transferee demat account number, along with some personal details.
- How to effect a transfer of shares?
The process that you need to follow for the transfer of securities is very similar across depository participants. Therefore, irrespective of the depository participant that you’re partnered with, the process would remain largely the same. Here’s a quick sneak peek.
1. Fill the DIS with all the relevant details such as the ISIN number of the securities, name of the company, client ID, transferee demat account number, and DP ID of the transferring demat account.
2. Once you’ve filled in all the details, sign the DIS. The signature on the DIS should match the one one your DP’s database.
3. Submit the filled and signed DIS at the branch office of your DP. Your DP would process the same and if satisfied, would initiate the transfer of securities within a few days.
If you possess your demat account with Central Depository Services Limited (CDSL), you can even initiate the transfer of shares through the internet. Here’s how.
1. Visit the website of CDSL and register under the ‘EASIEST’ platform.
2. Once you’ve registered yourself, log into the EASIEST platform using the credentials given to you.
3. After logging in, you would need to add the beneficiary demat account as a trusted account.
4. Upon adding the beneficiary account, you would then be able to initiate the transfer of securities after 24 hours.
Conclusion
As you can see from the above, this is all that you need to do to transfer shares from one demat account to another. And once you’ve transferred all of the securities, you can then proceed to close your demat account by intimating your DP.
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