How to transfer shares from one demat account to another

However, some new age stockbrokers like Zerodha and Angel One (earlier Angel Broking) and few others provide you the facility to transfer shares online easily. The online transfer can be done in two ways- either through your demat account or by registering for CDSL Easiest. CDSL is short for Central Depository Services Limited, and is the easiest electronic access to securities information and execution of secured transactions.

But not all demat account providers or depository participants like stock brokers and banks offer this facility. In many cases, you still have to go the old-fashioned offline or physical way- apply for a physical Delivery Instruction Slip (DIS) booklet, fill in all the details in it, and submit it to your bank or stockbroker along with the client master. Do it. Report (CMR). CMR is a digitally or physically signed certificate with your demat details issued by your broker.

DIS is similar to a cheque, when you are transferring money from one bank account to another. Just like cheques, you can transfer stock between demat accounts by filing a DIS and signing it.

There are two types of share transfer. The first is closure-cum-transfer, in which you close the old account and transfer all its holdings to a new demat account. The other is just a partial transfer, where the old account remains active. In case of closure-cum-transfer, the process can be done through physical mode only, except where the broker facilitates it online. There is no provision for closure-cum-transfer requests in CDSL Easiest. Further, in case of transfer of shares, where the source and target demat accounts may belong to different persons, closure-cum-transfer can be made between two demat accounts of the same person (single or same joint account holder) only. could. ,

Offline transfer of shares

Under the offline route, you have to first apply for Delivery Instruction Slip (DIS) booklet. You can do this through your broker’s mobile app/website or by email or by visiting the broker’s office. In case of banks, you can do this through net banking or by visiting a designated branch. Many brokers give you the option to have it delivered to your registered address or pick it up from your office. With banks, collecting it in person may not be an option.

Thereafter, the filled DIS has to be deposited at the broker office/bank branch from whose demat account the transfer is being initiated. Note that, in case of banks, DIS can be deposited only at certain specified branches. You need to enter basic details like transferee account holder name, depository participant ID and client ID for the target demat account, shares (ISIN and quantity), etc. ISIN is the unique number assigned to each listed security. You will also have to submit the CMR. This goal is to be achieved from the broker of the demat account in which the shares are being transferred.

According to some investors, Mint took anywhere from a few days to a month after the deposit of the DIS to make the share transfer through physical mode.

online transfer of shares

You have two options to transfer shares online. The first is to do it through your demat account and the second is to do it through the website of the concerned depository (CDSL/NSDL).

While some brokers may offer an online transfer option, the process may not be completely online due to security reasons. For example, ICICI Direct’s e-instruction process requires at least one account holder to submit the form in person for initial registration. Once your registration is approved, you can transfer shares to any Demat account (pre-notified, up to a maximum of five) completely online. There may also be monetary limits on the value of shares that can be transferred online.

If the source demat account (from which the shares are being transferred) is with CDSL, and with NSDL SPEED-e, if it is with NSDL, you should do the easiest registration with CDSL. The registration process for CDSL Easiest is quite convenient and can be completed online. According to a person familiar with CDSL Easyest, in case of a jointly held demat account, however, the form will have to be submitted physically and a declaration will be required from all the account holders in favor of the person operating the account.

Once the registration is complete with approval from the broker, you can initiate the transfer of shares to any other demat account with CDSL or NSDL. The investors Mint spoke to only transferred shares between CDSL demat accounts (intra-depository transfer) via Easiest and got a seamless experience. Inter-depository transfers, however, come with additional steps.

To ensure that shares are not transferred fraudulently from your demat account, there are security measures built into the system. According to Harshad Malushte, Head of DP Operations, HDFC Securities, as an added security measure, a share transfer request through CDSL/NSDL has to be authenticated through an OTP sent to your registered email id and mobile number.

Cost, Portfolio and Taxation

No charges are levied if you close your demat account and transfer all your holdings to another demat account. In case of transfer of shares only, the charges are minimal – a small percentage of the transfer price or a flat fee such as 15-25 per share. In case of transfer involving some consideration (payment for transferred shares), stamp duty is applicable.

loss of records, taxation

When you transfer shares, are there a record of your original purchase price and quantity? An investor pointed out that such information for transferred shares was not visible in his Target Demat Account (Grow), and he had to remove this information from his Source Account (Angel) and save it for future reference. But according to another investor, he was able to view these details after a share transfer from his Zerodha to Paytm Money demat account. Hina Qureshi, Senior Vice President and Head – Digital Business, Mirae Asset Capital Markets (I) Pvt Ltd says, “Some brokers offer clients the option to manually update the purchase price and date in their mobile app or web portal .

“Transfer of shares from one demat to another demat of the same person is not a taxable transfer,” says Neeraj Agarwal, partner, Nangia Anderson India. on their relationship. If A and B belong to the same family (in specified relationships such as parents or spouse), there will be no tax implication. However, if they are not part of the same family, the transaction will be taxed in the hands of B if the total value of the gifts received exceeds 50,000 in a year.