A Demat account, also known as a dematerialization account, enables investors to hold their financial securities in a single place. A Demat account facilitates you in keeping track of your investments, starting from stocks, bonds, etc. under one roof.
If you have multiple Demat accounts and are looking for a way to merge them into one, this article is for you. Shares can be seamlessly transferred from one Demat account to another for online share trading. The best part is that the process involves no tax implications if the ownership of the equities remains the same.
Contents
There are many instances when shares are transferred from one Demat account to another.
Bringing all the shareholdings under one account makes it easier to manage, track, and alter your investments.
2. More Rewards
Who doesn’t like getting more rewards and better services for less money? If you find a good deal, it is obvious to switch to another Demat and transfer shares.
3. Other Factors
Different factors influence why you decide to transfer your shares, such as shifting from a bargain broker to a full-service broker; you might want to experiment with new investment types, or the new provider is offering you value-added services such as market intelligence reports.
Transferring shares between one Demat account to another is supported in 2 ways- offline and online.
There was a time when brokers didn’t allow online options to transfer shares from one Demat account to another. However, this is no longer the case. You can log into the NSDL/CDSL website and transfer shares or can also get in touch with your broker to understand the nitty-gritty.
For all the brokers that support the online procedure, let’s get to know the procedure to transfer shares between two Demat accounts:
- You must first select the “Register Online” tab on the CDSL or NSDL website.
- Next, you are required to select a service called Secured Transaction Execution.
- Fill in the details and present them to the (DP) depository participant.
- The DP sends the form to the central depository, which manages the subsequent steps of the process.
- You will be then notified with a verification email on your registered email id.
And, you are done! It was easy, wasn’t it? Let’s also see the offline procedure.
Here is a summarized, step-by-step process of transferring shares offline from one Demat to another:
- As a first step, you will have to fill out the Delivery Instruction Slip (DIS) and give it to your current broker.
- The broker sends the DIS form to the depository.
- The depository will move your existing shares to the new depository.
- The transferred shares will then reflect in your new Demat account.
This too is simple, however, the online transfer is much quicker.
Conclusion
Do you wish to transfer your shares between different Demat accounts? Follow the steps mentioned here to make the process easier and more convenient for yourself and effortlessly undertake share trading online.