In the past few years, India has seen a surge in the number of equity investors. Especially, youth is investing more in the equity market. If you too are investing in the share market, then you must have one or more Demat accounts. We often use multiple Demat accounts for trading, but this makes it difficult to manage the portfolio. If all the shares are in one or two accounts then it will be easy to track. So if you have multiple Demat accounts then you can transfer your shares from one account to another. This process can be done both offline and online. Here’s how you can do it?
When do people transfer shares?
There can be a number of reasons to transfer your shares from one Demat to another. Here are some common reasons to do so.
- Bringing a portfolio under one roof makes it easier to handle investments.
- People often want to change Depository Participant for better returns.
- Personal bad experiences like glitches during crucial trading points often lead investors to switch their Demat accounts.
Offline process:
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If you want to transfer shares through offline mode, then an application form has to be filled for this. For transfer, a Delivery Instruction Slip has to be filled which is a kind of form. In this form, you will have to furnish the details of the shares and the account to which you want to transfer them. Like ISIN number of the share, name of the company, Demat account and DP ID of that account. After filling in all the information, this form has to be submitted to the office of your existing broking company.
Once the form is submitted, the shares are processed and transferred to another Demat account. Keep in mind that after transferring the shares, close the old account. Also, the broking company will not charge the processing fee for the share transfer application.
Online mode:
The online mode is more in vogue these days. The online method is quite easy.
- Register on CDSL or NDSL website. Here you have to fill in the information of the old Demat account (from which the shares are to be transferred).
- After this, fill in the details of the account to which you want to transfer the shares.
- After this, the Depository Participant will verify the details and send you an e-mail.
- After this, shares can be transferred from the old Demat account to the new Demat account.