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How to shift your holdings from one Demat account to another

Introduction

Demat accounts are responsible for making the holding of investments such as shares, government securities, bonds, ETFs, insurance and Mutual Funds easier. They don’t only remove the problems and inconveniences that come with holding investments physically but at the same time have made the process of transfer of said investments very fluid and efficient.

But why should one shift their holdings from one account to another? Over time, investors are more likely to create many demat accounts, making it more difficult to keep records of them all. Having many accounts might be time-consuming in the long term, specifically if you're using one to hold your investments and the others remain dormant. So transferring these holdings into a single account leads to better management as well as tracking the performance of their numerous investments.

Moreover, they can even easily compare the performances of said investments too. There are many other reasons for shifting one's holdings from one account to the other like cutting down on maintenance fee and paperwork etc. So, let us now take a look at how the process for shifting holdings in between accounts actually takes place-

Manual Transfer-

For this, the account holders need to have a DIS from their broker. This DIS gives them the exact required info for transferring their holdings, which investors must fill out before they are transferred.

If they are doing an intra-depository transfer, they will need to pick off-market. If this isn't the case, they will need to employ the inter-depository option.

Moreover, the account holder's signature is required when they have entered all of the information on the DIS. Now , it must then be sent to their present broker. The broker will charge them for this transfer. The fees, on the other hand, may range from one broker to the next.

Online Transfer-

EASIEST CDSL is an electronic transfer service that allows investors to move their holdings from one demat account to another. To do so, they will need to follow a few simple steps.

Should visit the CDSL's webpage and pick the Register Online option to register online. Fill in all of the needed information using the EASIEST option.

Print and mail the page to their Depository Participant (DP). The DP will transmit it to the Central Depository within 1-2 days, which will validate the information and provide the account holder the login credentials. The procedure is now complete, and they can access the roster of brokers by logging in. The holdings can now be transferred from the investor’s old account to their new one.

Conclusion

So these were the uses and the process of transferring your holdings from one account to the other. Although the offline technique is still useful in many situations, investors often prefer to transfer shares online too because of its simple nature and the convenience it provides. If you wish to learn more about the stock markets before investing your money, you can do so here. You can also easily open a demat account online and begin your investment journey.