When an investor opens a Demat account with a new broker, they often wish to transfer their existing shares from one Demat account to another. Learning about how to transfer shares from one Demat to another can seem like a complex process, but with a few simple steps, it can be completed smoothly. If you’ve chosen SMC Global Securities for your Demat account, this guide will walk you through how to transfer shares to SMC’s Demat account from your existing broker.
Understanding the Transfer Process
Transfer shares from one Demat to another online as it is a straightforward process. This transfer is typically done through a mechanism known as inter-depository transfer. The key point to remember is that both accounts involved (the sending and receiving accounts) should be held with a Depository Participant (DP) that is registered with either the Central Depository Services Limited (CDSL) or National Securities Depository Limited (NSDL).
For the sake of simplicity, let’s break down the steps for transferring shares from another Demat account to SMC Demat account.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Here is an avid process on how to transfer shares from one demat to another online;
1. Ensure Both Accounts Are Active
The first step is to ensure that your Demat account is active and operational. You need to complete all KYC procedures and ensure your existing Demat account is active too. If either of the accounts is inactive or blocked, you won’t be able to initiate a transfer of shares.
2. Obtain the Delivery Instruction Slip (DIS)
To transfer shares, you will need to complete a Delivery Instruction Slip (DIS), which is a document that authorizes the transfer of securities from your current Demat account to your other Demat account. You can either collect the DIS book from your current DP (Depository Participant) or, in the case of SMC Global Securities, you may receive a form that allows you to initiate the transfer.
The DIS needs to be filled out with the following details:
- ISIN Code: The ISIN (International Securities Identification Number) for each share that you wish to transfer.
- Quantity of Shares: The number of shares you wish to transfer.
- Details of the Receiving Account: The Demat account number (SMC’s account in this case).
- Signature of the Account Holder: You need to sign the DIS, which must match the signature on record with the DP.
3. Submit the DIS to Your Current Depository Participant
Once you have completed the Delivery Instruction Slip, you need to submit it to your current Depository Participant (the broker with whom you hold the original Demat account). Your DP will then validate the slip and process the transfer request.
- If your current DP is with CDSL, you’ll need to submit the DIS to them for processing.
- If your current DP is with NSDL, the transfer process will still be similar, but they may have slightly different procedures.
4. Provide Demat Account Details
In the DIS, ensure that the Demat account number is correctly mentioned as the receiving account. Also, ensure that the name of the beneficiary (your name) matches the records on file with your Demat account. If there’s any discrepancy, the transfer may not be processed.
5. Verification Process
Your current broker (Depository Participant) will verify the details in the DIS. Once verified, they will initiate the transfer of shares to your Demat account. This can take a few days depending on the broker’s processing time. After initiation, the shares will be moved from the source Demat account to your Demat account.
Once the shares are transferred, SMC will update your Demat account with the transferred shares. You can log in to your SMC Demat account or check your SMC trading platform to confirm that the shares have been credited. If there are any issues or discrepancies, you can contact SMC Global Securities customer support for assistance.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Important Points to Remember
- Processing Time: The transfer can take anywhere from a few hours to 3-5 working days, depending on the Depository Participant involved.
- Charges: There might be nominal charges for transferring shares, which are usually determined by the Depository Participants. Be sure to check with your broker for these charges.
- Discrepancy in Details: If the details of the sender and recipient accounts don’t match, the transfer request might be delayed or rejected.
- Multiple Transfers: If you have a large number of shares to transfer, it might be a good idea to split the transfer request into multiple forms to ensure smooth processing.
Conclusion
Learning how to Transfer shares from one Demat to another online, as it includes your SMC Demat account, is a simple process that requires attention to detail and proper documentation. By following the above steps, you can ensure that your investments are safely moved, allowing you to manage them more efficiently within your new Demat account. Always make sure that you double-check the details and consult with your brokers when needed to ensure a smooth and hassle-free transfer.
Frequently Asked Questions – FAQs
Yes, you can initiate the transfer process online by submitting a Delivery Instruction Slip (DIS) electronically or through the broker’s online portal, depending on the features offered by the broker. Some brokers may allow an e-DIS facility for easier online transfer.
Typically, the process of transferring shares takes 2-5 working days, depending on the current Depository Participant’s processing times. Once the transfer is initiated, the shares should reflect in your Demat account shortly.
Yes, there may be nominal charges for transferring shares between Demat accounts. These fees are determined by the Depository Participants involved in the transfer process. Always inquire about these charges before initiating a transfer.
Yes, shares can be transferred from an NSDL Demat account to a CDSL Demat account, and vice versa. The process remains the same, but you need to ensure the correct ISIN and account details are provided.
5. Do I need to contact SMC Global to initiate the transfer?
While the primary responsibility for initiating the transfer lies with your existing broker, it is advisable to contact SMC Global’s customer service to ensure that your Demat account details are correct and that there are no issues during the transfer process.
Author: All Content is verified by SMC Global Securities.
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account