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If I Buy New Stocks Will I Have to Verify My Holding Again to Sell Them

01 Dec 2023

Stock market investing can be exciting, especially when you're buying new stocks. However, before making a new investment, many investors wonder about the process involved in selling those stocks in the future.

One common question that arises in this context is whether they will need to verify their holding again if they decide to sell those new stocks later on.

In this article, we will explain what eDIS is, how it works, and whether you need to verify your holding again if you buy new stocks.

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What is eDIS and How Does it Work?

eDIS stands for electronic delivery instruction slip. It is a digital authorisation that you give to your depository participant (DP) to debit your demat account and transfer your shares to the exchange for settlement. 

eDIS replaces the physical delivery instruction slip (DIS) that you had to fill and sign earlier. eDIS works in the following way:

  • When you place a sell order on your Motilal Oswal online trading platform, you will be asked to verify your holding using eDIS.
  • You will be redirected to the CDSL website, where you have to enter your TPIN and OTP to confirm your verification.
  • Once you verify your holding, your DP will debit your demat account and transfer your shares to the exchange for settlement.
  • You will receive a confirmation message confirming the successful completion of your holding verification.

Do I Need to Verify My Holding Again if I Buy New Stocks?

The answer is yes. If you buy new stocks and want to sell them later, you must verify your holding again using eDIS. This is because every sell order requires a fresh verification of the quantity and details of the shares that you want to sell.

However, you don't need to verify your holding every time you place a sell order, on the same day.

. You only need to verify your holding once daily for all the sell orders you place on that day.

For example, if you have verified your holding for 100 shares of ABC Ltd. in the morning and want to sell 50 shares of ABC Ltd. in the afternoon, you don't need to verify your holding again. But if you're going to sell 50 shares of XYZ Ltd. in the afternoon, you will have to verify your holding for XYZ Ltd. using eDIS.

Note: You can verify your holding at any time of the day. But if you do this after market hours, then your holding verification will be valid for the next trading day.

Why Do I Need to Verify My Holding Using eDIS?

You need to verify your holding using eDIS for two main reasons:

  • To comply with the new regulations issued by SEBI and CDSL that aim to prevent unauthorised transactions and misuse of demat accounts.
  • Ensure that you have sufficient balance in your demat account and avoid any rejection or penalty due to short delivery or mismatch of shares.

Conclusion

If you buy new stocks through Motilal Oswal, you need to verify your holding again to sell them.

Once you've gone through the first step of verification and started a Demat account, you can buy and sell stocks as often as you want without having to go through any more checks.

But it is always best to know the latest rules and regulations about stock trading and verification methods to make sure that trading goes smoothly and without problems.

FAQs

Q: Is it safe to verify my holding online?

A: Yes, it is safe to verify your holding online. Motilal Oswal uses the latest security measures to protect your personal information. When you verify your holding online, your information is encrypted and transmitted securely.

Q: If I buy new stocks, will I have to verify my holding again to sell them?

A: When you buy stocks online, you need to verify your holding before you can sell them. This is done to ensure that you are the rightful owner of the stocks and that you are not selling them to someone else.

Q: I have more questions about verifying my holding. Who can I contact?

A: If you have any questions about verifying your holding, contact Motilal Oswal customer support at 022 40548000, 022 67490600, or mail at query@motilaloswal.com.

 

Related Articles: How to decide whether to buy a stock or a call option? | What Is the Right Time to Invest in Stocks | Longterm Investments in Stocks

 

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