When you buy and sell shares in the stock market, your demat account is credited and debited respectively. Apart from buying and selling shares, interestingly you can also transfer shares from one demat account to another.
Some of the common reasons which compel you to transfer shares from one account to another include when you want to change your broker, when you want to merge your multiple demat accounts into one, when you want to split a single demat account into multiple, when you want to shift from a full service broker to a discount broker or vice versa, etc. For the above reasons, you may choose to transfer shares from one demat account to another.
There are primarily two ways in which you can transfer the shares from one demat account to another – online and offline.
Online Transfer of Shares from One Demat Account to Another
- Firstly log on to the Central Depository Services Limited (CDSL) website and register yourself.
- Next, fill the share transfer form and get it approved by the Depository Participant (DP).
- On successful verification, you will receive a password on your registered email id.
- Using this password, you can access your account and transfer the shares from one demat account to another.
Offline Transfer of Shares from One Demat Account to Another
- Firstly, gather all the information and details of the shares you wish to transfer.
- Next, obtain the 16 digit long Target Client ID.
- Fill up the offline form / DIS slip and select the desired method of transfer. You can choose between intra-depositary transfer and off-market transfer.
- On filling the DIS slip, sign it and give it to your broker.
- Collect the receipt from the broker.
- The broker will then look after the transfer formalities. The entire process might take 4-5 days.
The online mode of transfer is a bit convenient and faster as compared to the offline mode. However, both online as well as offline mode of transfer, have their own mode of operation. You may choose the one based on your preference and convenience. People who know what is demat account, very well know its advantages. You too can reap the benefits of trading and investing by opening a demat account. If you wish to open demat account, you may consider Kotak Securities.