Guide to Transferring Shares from One Demat Account to Another

Investing in stocks is a lucrative way to build wealth over time. Thanks to fintech advancements, you can now store shares electronically in a Demat account. However, transferring shares from one account to another can be a complex process if you are new to the system. 

 

You need to transfer your shares when you change your Depository Participant (DP) or while consolidating your holdings in a single account. Knowing the steps for the same is essential to ensure the transfer is seamless. 

You can easily transfer your shares through online or offline modes. Here are the steps you need to follow for both the options:

Offline:

1. Make a list of shares for transfer and note their International Securities Identification Number (ISIN)

2. Record the target client ID or Beneficiary Owner (BO) ID, which is a combination of the ID of the client and DP

3. Choose the suitable transfer mode between intra-depository and off-market

4. Complete the Delivery Instruction Slip (DIS) that your broker will provide and submit it to your current broker or DP

5. Get an acknowledgement receipt after submission

6. Pay a fee for the transfer, depending on the policies of the broker 

 

The shares from your old account will be transferred to the new account within 3 to 5 business days

Online:

1. Register for online transfer using CDSL’s ‘Easiest’ or NSDL’s ‘Speed-e’ facility and complete the registration process
   
       For NSDL: Visit the ‘New user registration’ section, choose ‘Speed-e’, and follow the registration steps
   
       For CDSL: Click on ‘Register for Easiest’ and provide Demat account details, OTP, and account details
2.  After submitting the online registration form, take a printout, and submit it to your broker

3.  Your broker will forward the form to the central depository for verification

4. Once verified, you will receive login credentials via email

5. Follow the instructions on the website to complete the transfer of shares from one demat account to another

6. After the transfer is complete, you will get a confirmation email

While transferring shares from one Demat account to another, consider the following pointers:

• Check the Details

Before initiating the transfer of shares, you need to ensure that the Demat account and the DIS details are correct. Any mistake in the details can result in the transfer of shares to the wrong Demat account.

• Submit the Documents

Ensure you submit all the required documents to the DP for opening a Demat account and transferring shares. Failure to submit the necessary documents can delay the transfer.

• Check the Charges

DPs may charge a fee for opening a Demat account and transferring shares. You need to check the charges and ensure they are reasonable before doing the same. You can open a Demat account online in just a few steps and with minimal charges on Bajaj Markets.

• Monitor the Transfer

You need to monitor the transfer of shares to ensure that it is completed within the expected timeframe. Any delay in the transfer can result in a loss of opportunity or a loss in the value of shares.

  

Transferring shares from one Demat account to another is a crucial aspect of investing in the stock market. With the growth of digital trading platforms and the ease of online transactions, the transfer process has become more streamlined and efficient.

 

Being aware of the steps involved and taking necessary precautions ensures a smooth transfer. By following the guidelines and keeping a watchful eye, you can securely transfer your shares from one Demat account to another.