Demat account is a mandatory requirement to trade or invest in shares or securities in the Indian stock market. With the introduction of the demat account, the transactions can be completed in seconds which was not possible in case of physical share certificates.
Demat account is the safest and secure mode to transact in the Indian markets. With the demat account, you can even transfer shares from one account to another. However, not many people are aware of this process. In the article, we will list down the process of transferring shares from one demat account to another.
There are many reasons why people want to transfer their shares from one account to another. There are two modes through which it can be done i.e. online and offline. Depending upon the investor’s preferences, he can select any mode to transfer his shares.
Let us first learn about the online mode of transfer of shares from one demat account to another.
Online Mode of Transfer of Shares From One
Demat Account to Another
- Firstly, visit the website of the depository participant where the online transfer of shares take place.
- Now, the demat account holder would need to register himself on the website.
- After registering, the account holder must fill a form which needs the approval by the depository participant or the DP.
- After the completion of the verification process by the depository participant, demat account holder will receive a password on his registered email ID.
- Now the account holder can use the password to access his account and transfer shares from his demat account to another.
Let us now learn about the offline mode of transfer of shares from one demat account to another.
Offline Mode of Transfer of Shares From
One Demat Account to Another
To transfer shares using the offline mode, you will first need to know your International Securities Identification Number or ISIN. ISIN is a 12 digit number that is used to track and recognise the different form of securities. You must remember that the offline mode of transfer is a lengthier process than the online mode. The process to transfer is as follows:
- When you transfer using the offline mode, you must make a note of all the share details that you want to transfer.
- Offline mode of transfer begins by recording the Target Client ID. It is a 16 digit long code which contains the IDs of both the clients and the depository participant.
- In the next step, you must select the mode of transfer in the Delivery Instruction Slip (DIS). If your mode of transfer is an Intra-Depositary or an Off-Market Transfer, then select the column titled “Off-Market Transfer”. If your mode of transfer is Inter-Depository then you must select the column titled “Inter-Depository”.
- After filling up the DIS slip, you must sign it and submitted it to the broker.
- The broker will give you a receipt in return and now it is his responsibility to transfer the shares. In general this process takes around 4 to 5 days. The broker might charge additional fee for this service.
The above mentioned process shall help you in transferring shares from one account to another using the offline or online mode.
You must also know the tax implications when you are transferring the shares. If you want to avail the real benefits of your investments, you must open a demat account. Kotak Securities is one of the leading broking firms and you may consider them for opening the demat account. Their affordable rates, premium services and customer support makes them ahead of their competitors in the broking industry.
