I am 35 years married with a daughter and residing in Mysuru. I have shares of some blue-chip companies in my demat which I want to transfer from my current stock broker to another. Is this transfer possible? Are there any costs involved in the transfer?
Before transferring shares between demat accounts, you have to first understand how your shares are maintained in depository systems. In India two organizations are authorized to hold your shares called depositories. 1. NSDL (National Securities Depository Limited) 2. CDSL (Central Depository Services Limited) Your broker will be attached to either one of them. You want to transfer shares from the currentservice broker to new/targetservice broker You would have received a booklet called DIS (Delivery Instruction Slip), when you opened the demat account with the current service broker. Your current service broker would have printed most of the details except Target DP and security details. You have to fill Target Client ID which is the client ID of your new broker. (Make sure it's a 16-digit number). ISIN called International Securities Identification Number is a 12-digit code which helps you identify shares. You have to mention individual shares with quantities and other details. To transfer shares: 1. Fill up the DIS slip as mentioned above. 2. Ensure Target Client ID is properly filled. 3. Submit the duly filled DIS to your current broker. 4. Collect the acknowledgement from the current broker of the filled DIS slip. If you submit the filled DIS form to your current broker, it will be transferred to the new/target account by the next business day. As far as costs are concerned, charges vary from broker to broker and are minimal. If you are closing the demat account with the current broker, this process is free of cost and the stock broker cannot charge you anything for this transfer. If you are closing the demat, you must return the unused DIS slips to the broker.
Copyright@ 2019-20 Suvision Holdings Pvt Ltd