The basic fundamental of the share market is having a Demat account. Without a Demat account, one is unable to buy and sell; basically trade shares. It is only after creating a Demat account is when one is able to venture further into other functions.
While transferring shares from one Demat account to another, for whatever reason that may be, there are certain participants who fall into the picture.
Who is involved in transferring shares from one Demat to another?
- Current broker
- Investor
- New broker
- Depository: the NSDL and CDSL.
The Process of Share transfer
Transferring shares from one Demat account to another is really simple. One just has to follow these steps:
- The investor needs to fill the DIS – Delivery Instruction Slip – and submit it to the current broker
- The broker then forwards the DIS form or request to the depository
- The depository will transfer your pre-existing shares to the Demat account you wish to transfer it to
- Once all the shares are successfully transferred, the same will be reflected in the investor’s new Demat account.
Transferring shares manually
Before transferring your shares, you need to understand some of the DIS components in order to complete the offline transfer process.
- For transferring shares manually, you will be required to fill in the details stated below carefully in the Delivery Information Slip (DIS) provided by your broker.
- ISIN number
The transfer of shares will be done on the basis of the ISIN number. It is a 12 digit code that authenticates shares. Positively double-check the ISNI number mentioned in the DIS
- Mode selection
The predefined reason codes select the mode- intra-depository transfer or inter-depository transfer. The intra-depository transfer is the ‘off-market transfer’.
- Target client ID or Beneficiary owner ID
It is a 16 digit code that is a combination of DP ID and client ID
- DIS should be signed with the same signature you put with your existing broker when opening the Demat account
- The DIS is then submitted to the existing brokerage firm. They will in turn issue an acknowledgement slip.
Now you can transfer your shares with national depositories. The shares will then show up in your new Demat account within 3-5 days.
Online transfer of shares
People also have the option to transfer shares from one Demat account to another online as well. Follow the steps given below to transfer shares from the comfort of your home:
- Go to the CDSL portal
- Click on the ‘register’ online link and fill in the form with relevant details
- After filling in the form, click on ‘print form’
- This will initiate a transfer of the form from your depository participant in question
- The depository participant will then verify your form and send a password to your email address that is registered
- Then, the password can be used to register onto the myeasi (Electronic Access to Securities Information) platform, and the account holder can initiate a transfer of shares themselves.
