How to transfer shares from one Demat account to another Demat account
For trading in the stock market, you need to have a Demat account. A Demat account is like a bank account in which you transfer shares instead of money like in a bank account.
People open many Demat accounts according to their needs and preferences, if you also have two or more Demat accounts and want to know how to transfer shares from one Demat account to another or want to transfer your shares to someone’s else Demat account then read this article to know how to transfer shares from one Demat account to another.
Reasons for transferring shares from one Demat account to another.
First of all, why does someone transfer his/her shares from one Demat account to another. There are many reasons for transferring shares from one Demat account to another. Some of the common reasons are
- Not satisfied with the services of your current broker is the main reason people transfer their shares from one Demat account to another account.
- having multiple Demat accounts and you want to merge your portfolio into a single Demat account.
- having multiple Demat accounts and wants to diversify your portfolio from one Demat account to another can be another reason for transferring shares from one Demat account to another Demat account.
- if you want to give your shares to someone else, in this case, you also need to transfer your shares from your Demat account to another person’s Demat account.
- Another reason for transferring shares from one Demat account to another is if you found another broker that gives you more services than your current broker then you want to move to that broker in this case you also need to transfer your shares from your old Demat account to your new Demat account.
How to how to transfer shares from one account to another account?
There are two ways in which you can transfer your shares from one Demat account to another Demat account you can either transfer your shares manually or online.
How to transfer shares from one account to another account manually?
For manually transferring your shares from one Demat account to another Demat account you have to apply for a delivery instruction slip book from your broker and have to fill many mandatory columns in it to transfer shares from one account to another account.
What is the delivery instruction slip book?
DIS book or Delivery Instruction Slip Book is like a checkbook for the Demat account by which you can transfer your shares and securities from one Demat account to another manually.
How to transfer shares using the delivery instruction slip book?
- You have to fill International securities identification number ISIN which is a unique id number of a share. Write ISIN of shares that you want to transfer to another Demat account.
- BOID is already mentioned in your transferring slip so you did not have to type it manually it is the 16 digit ID of the broker.
- If you want to transfer your shares of the market you have to choose “Intra depository transfer “options otherwise it will be “inter depository transfer”.
- And after filling security name and value in the figure in words and figure send this to your broker.
- Your broker may apply some charges on transferring shares from one account to another account these charges vary from broker to broker however if you want to deactivate your Demat account from your broker it cannot charge any fees.
Also, read-How to fill Delivery Instruction Slip Book (DIS)?
Now we have already seen know how to transfer shares from one Demat account to another Demat account manually now we see how to transfer shares through the online procedure.
How to transfer shares online?
For online transferring shares, you have to open the CDLCindia.com website to transfer shares online.
Follow these steps to transfer shares online
You have to register on this website to transfer shares. Click on the registration link to register on the website and fill in the mandatory details and proceed to the next step.
- Now after registering select the option easiest EASIEST in the menu bar and proceed for further details.
- Fill in the details given in the form.
- Take out the print out and give it to the Depository Participant.
- DP has to send this repository to the central repository and they will verify your details and you will get your login ID and password in your email within a couple of days.
- login with this ID and password Hindi website and fill in your broker details and your Demat details to transfer your shares from one account to another.
Taxes applied for transferring shares
If you transfer your shares from your one Demat account to another Demat account then there are no taxes charged from you.
If you transfer shares from your Demat account to another person Demat account then you have to mention the reason for the transfer of shares and there is no text if you gift to share to someone if it doesn’t exceed the limit.
FAQ’s
Q: Can shares be transferred to another Demat account online?
A: There are mainly two ways in which you can transfer your shares from one Demat account to another Demat account manual or online. To transfer shares online to another Demat account visit CDLCindia.com and fill in details.
Q: Can we transfer shares from one broker to another?
A: To transfer shares from one broker to another broker you have to fill counter DP ID and counter Clint ID in BO to BO column of account transfer with in CDSL in
Q: Can we transfer the Demat account?
A: You can transfer shares from one Demat account to another Demat account but you can not transfer your Demat account to another broker.
Q: how to transfer shares from one Demat account to another Zerodha
A: Procedure of transferring shares from one demat account to another Zerodha is the same as in every other demat account you can use either of the two methods of transferring shares from one account to another zerodha online or by Delivery Instruction Slip Book.
Q: Can I have 2 Demat accounts?
A: You can open as many accounts as you want but you can not open more than one Demat account with the same broker.
Q: How do I transfer ownership of shares?
A: You can transfer ownership of shares either by online or manual by selecting BO to MO transfer in within CDSL or Outside CDSL.
Q: Do you pay tax on the transfer of shares?
A: If you transfer your shares from your one Demat account to another Demat account then there are no taxes charged from you.
If you transfer shares from your Demat account to another person Demat account then you have to mention the reason for the transfer of shares and there is no text if you gift to share to someone if it doesn’t exceed the limit.