Home/Blogs/Can I transfer all my securities to my account with another demat and close my demat account

Can I transfer all my securities to my account with another demat and close my demat account

stock market
28 Jun 20216 mins readBy MOFSL

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. 

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account

Disclaimer: The stocks, companies, or financial instruments mentioned in this blog are for informational purposes only and should not be considered as investment recommendations. It is advised to consult with your financial advisor before making any investment decisions. Investment in securities markets are subject to market risks, read all the related documents carefully before investing. Investors are strongly encouraged to carefully read the risk disclosure documents prior to participating in market-related investments or trading activities. Due to the volatile nature of financial markets, no guarantees can be made regarding investment returns. Motilal Oswal Financial Services Ltd. does not offer any assured returns on market-linked securities. Please note that past performance of stocks or indices is not indicative of future results.
Open Demat Account
I wish to talk in South Indian language
By proceeding you’re agree to our T&C
Click here to see your activities