Step-by-step guide on transferring your shares from one Demat account to another:
Step 1: Firstly; the investor needs to fill out the DIS form i.e. called Delivery Instruction Slip, and submit it to their current broker.
Step 2: Then your broker will forward your DIS application to the depository.
Step 3: Once your DIS application is submitted to the depository, the depository will transfer all existing shares to your new Demat account.
Now, transferring shares can be done in two ways. It can be done manually called offline transfer or you can do it online. In this article, both the procedure is explained step by step:
Offline Transfer or Manual Transfer:-
- Target Client ID: This is also called Beneficiary Owner ID (BO ID). It is the 16-digit Unique Identification Number that is assigned to the investor. On the delivery instruction slip (DIS), you will have to mention the ID of both the existing and the new broker.
- ISIN: International Securities Identification Number (ISIN) is used to identify the shares and should be entered carefully in the DIS because the same will be transferred to the ID you have entered.
- DP Name: Must mention the name of Stockbroker or Depository Participant in the given field.
- Inter-Depository: If the transfer of shares is held between CDSL to NDSL or vice-versa, then this space will be required to fill.
- Off Market: If the transfer of shares held between CDSL to CDSL or NDSL to NDSL i.e. same depository, then you need to fill up this space as well.
- Once the DIS form is filled out carefully with all required fields and signed up for the DIS form, then:-
- Send your signed DIS form to your present broker
- You’ll get the receipt from the broker when you hand over your DIS form.
- After this, the broker will require a few days to transfer your shares to another Demat account with a new stockbroker or depository participant (DP).
CDSL has an element called EASIEST on their website through which you can transfer your shares from your home, workplace, or from anywhere at any time. For this, just go through the following steps:-
- First, visit the CDSL website and login yourself by entering your username and password.
- There you will see a link to “Register Online”. Just click over it.
- Select the EASIEST option.
- Fill in the details given in it, take a print-out and send it to your Depository Participant (DP).
- DP will send your application to the Central Depository, which will verify your details.
- Once your identification gets verified, you will receive an email with your registered email ID.
- You can log in to your new Demat account and start transferring your shares on one’s own.
Let’s check out the reasons why an investor needs to transfer his Demat account. There can be several reasons, but let’s find the possible ones:-
- One of the major reasons could be to consolidate all his shares in one place.
- Another major reason could be to avoid higher brokerage.
- Thirdly, Might be getting better returns at a Low Cost.
- Fourthly, investors seek more investment services for different periods, or they want to shift from a discount broker to a full-service broker.
- The present broker is not quick, active, or tech-pro. His analysis and research work are not worthy or do not get up to the mark insights.
- Lastly but not least; Might investor has a bad experience with his present broker. The investor didn’t get enough support from a broker or felt ignorant.
- The stockbroker can charge you for transferring the shares. Every broker has a different price slab.
- It could be free of cost if an investor plans to shut down his or her Demat account, but he needs to return his DIS to the broker.
- Generally, It takes 3-4 hours. It takes 3-4 hours, if the transfer has to take place from an NSDL to CDSL or vice versa else if it has to transfer CDSL to CDSL or NSDL to NSDL depository then it takes 30 minutes or less to transfer. This is the estimated time after submitting your DIS to DP.