Several investors often open many demat accounts to avail of the trading benefits offered by different brokerages. Consequently, they end up with many demat accounts and their complete stocks portfolio is divided between different demat accounts and trading apps. This prevents the investor from having an integrated view of all his holdings and he is forced to juggle between different apps to trade shares. All this may also create a great deal of confusion, and investors cannot afford this when they are engaged in the allocation of capital to different securities and channels of investment. It is not surprising that investors believe in having portfolios diversified to get the most from their investments, but this should be conducted in a systematic way. So how can any investor have a comprehensive approach to all the investments they hold?
However, there is a way around this bottleneck. If investors know how to transfer shares from one demat account to another, investors and traders can now easily transfer shares from one demat account to another and have their stocks in a single location as and when they feel the need to do so. The share transfer can be done in two modes: online as well as offline. Shareholding can now be effectively consolidated in one place and investors can get a clear picture of their total holdings and the return on investments. Transferring shares from one demat account to another can be done in a few minutes.
The plain and simple answer to whether shares can be transferred from one demat account to another is “yes”. If you transfer all your securities to just a few accounts, as opposed to multiple, you get a good overall perspective of your holdings. You may have various reasons to transfer your securities from one demat account to another, and this may not be merely to have your shares under one roof. You may want to transfer your securities if your current demat account charges hefty fees to one which is lower in charges and fees. You may also wish to transfer securities as you may want to shift from the services of a discount broker to a full-stack broker. The key participants when you wish to transfer shares are the investors themselves, the current DP/s (brokers or banks), new DPs and the two main depositories - the CDSL and the NSDL.
If the investor or the shareholder is holding shares in NSDL or CDSL depositories, he has the option of transferring shares offline. He can do so by filling out a Delivery Instruction Slip (DIS). Other information such as the ISIN number of the shares, the name of the shares, the DP ID of the account to which the shares are to be transferred also need to be filled out. These forms will then have to be submitted to the broker for further processing.
In case the shares are held with CDSL, the depository now provides investors with the facility of transferring shares online via the ‘EASIEST’ platform. However, transferring shares using the Easiest platform can be done only if the transferee account is a trusted account. One can register on the platform by visiting the link: https://web.cdslindia.com/myeasi/Home/Login and filling in the demat account details. After this, details of the account to which the shares are to be transferred must also be filled. Once the account has been added, there is a waiting period of 24 hours. On the completion of the waiting period, one is allowed to transfer shares from the old to the new demat account.
Please note that your broker might levy charges for the transfer of shares from one demat to another. Additionally, the transfer of shares will not give rise to any capital gains and will not create any beneficial ownership of the shares. Your online trading account opening can be done in no time with Motilal Oswal and you can start trading immediately. You can also transfer shares online to your Motilal Oswal demat account.