With the increase in the entrant of new brokers in India, complaints of misdoings are on rise. In the previous post, we covered how to be alert and take appropriate actions if we sense all is not well with the broker. In this post, We will help you to understand how you can transfer your shares from one Demat account to another, reason may be anything.
* Read : What to do if your Broker goes burst! and How to be Alert!.
Difference between Inter and Intra Depository transfers:
To understand how to transfer shares between two Demat accounts, first we need to understand how your shares are maintained in depository Systems.
In India, two organizations are authorized to hold your shares and they are called Depositories.
1. National Securities Depository Limited (NSDL)
2. Central Depository Services Limited (CDSL)
Your brokers will be attached to either one of them and that will define the mode of transfer
- Intra Depository Transfers (Off market Transfers)- If both Current & new brokers are attached same Depository
- Inter Depository Transfers- If your Current and new brokers are attached to different Depositories
If you don’t have a demat account yet, you can read our article about How to open a demat account and charges associated with it
Filling up Delivery Instruction Slip (DIS):
Lets understand with the help of a hypothetical example, say, you want to transfer your shares from ShareKhan to ICICIdirect account.
You would have received a booklet called Delivery instruction Slip (DIS) when you had opened the account with Sharekhan. It will look something like the one in the below image (click on it to enlarge). Your current broker(Sharekhan) would have already printed most of the details except Target DP (ICICIdirect) and security details.
We have marked the important fields of the DIS slip in the below image (click on it to enlarge)
Now fill up the relevant details and select either Inter or intra depository transfer as shown in the image.
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Explanation for the fields in DIS:
* Target Client ID – Your client ID of new broker (ICICIdirect) (Ensure it is 16 digit number)
* Target Settlement details – N/A
* Settlement No – N/A
* ISIN – Shares of the every company will have unique number (ensure it is 12 digit number starting with IN)
How to transfer shares from one Demat to another Demat account?
To transfer shares between two Demat accounts, Follow these steps
- Fill up the DIS slip as explained above
- Ensure all the fields are correct, especially the target client ID
- Submit the duly filled DIS to your Current Broker
- Make sure you receive the acknowledgement from the current Broker
- Voila! you are done.
How Long it takes to transfer the shares to my new account?
If you submit duly filled DIS form to your current broker, normally it should be transferred to your target account by next business day.
How much it costs?
Well it varies from Broker to Broker, However the charges are very minimal
Transfer of shares in case of account closure:
We are mentioning this point explicitly because in case of closure, the transfer of shares to your new Demat is free of charge. Your current Broker is NOT supposed to charge anything for this service.
If you opt to close the account, then follow the similar procedure we mentioned above and apply for account closure.
Precautions to be taken with DIS:
The DIS is similar to the cheque book for your Bank account. So please take utmost care of it. Below are the few guidelines regarding the DIS
- Ensure that your Client ID is printed/stamped on DIS leaflet and not handwritten
- Ensure that the Target client ID number is correct
- Do not hand over the blank signed DIS leaflets to anyone to avoid misuse
- Once the entry is made in the DIS, strike out the remaining rows to avoid misuse
- If DIS book is lost/stolen, inform the broker immediately to stop processing
- You are supposed to return the unused DIS leaflets when account is closed.
How to transfer shares from one person to another?
The procedure remains same even transfer is from one person to another. You can transfer the shares to your spouse or any other family members following the similar procedure.
Also Read: 10 Best Stock Broking firms in India
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