Transferring shares from one Demat account to another is straightforward. The process involves two main steps. However, you should know the answer to the question – how to make demat account?
Step 1: Initiate the transfer request with the Depository Participant (DP) where the shares are currently held.
Step 2: Confirm the transfer request with the DP where the shares are to be transferred.
Here are the detailed steps on how to transfer shares from one Demat account to another to open trading account online:
Step 1: Initiate the transfer request with the DP where the shares are currently held
Obtain a Delivery Instruction Slip (DIS) from the DP where the shares are currently held. The DIS contains details such as the company name, the number of shares to be transferred, and the recipient’s contact details. Check out how to set up a demat account
Fill out the DIS with the relevant details, including the recipient’s DP’s details and the number of shares to be transferred.
DIS must be signed and submitted to the DP where the shares are currently held before an online trading account can be opened.
The DP will process the transfer request and debit the shares from the sender’s Demat account.
Step 2: Confirm the transfer request with the DP where the shares are to be transferred
Transfer requests will be received by the recipient DP and processed while considering opening an online trading account.
The recipient’s DP will credit the shares to the recipient’s Demat account once the transfer request is processed.
Things to remember while transferring shares once you know how to make demat account:
Ensure that the recipient DP is a registered DP with the depository where the shares are held. This can be verified by checking the DP’s registration number.
Ensure that the details provided in the DIS, such as the recipient DP’s details and the number of shares to be transferred, are accurate.
Check the transfer fees charged by the sending and receiving parties. This can vary depending on the DP and the number of shares being transferred once you open trading account online.
The transfer process usually takes 2-3 working days to complete. It may take longer if there are any discrepancies or issues with the transfer request.
It is imperative to note that the transfer provider may charge a fee for processing the transfer request. This fee is usually deducted from the sender’s Demat account.
Conclusion
Transferring shares from one Demat account to another is a simple process that can be completed by following the steps outlined above. It is paramount to ensure that the details provided in the DIS are accurate. In addition, the recipient DP is a registered DP with the depository and then you know how to make demat account. Additionally, investors should check the transfer fees charged by the sender DP and the recipient DP before initiating the transfer request. With the advent of online platforms and services, the transfer process has become more efficient and convenient. This makes it easier for investors to manage their investments.
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