Is it possible to transfer all my securities into a Demat account and then close my Demat account?

You might transfer shares from one demat account into another just as money is transferred between bank accounts. In any of these cases, a person may want to transfer shares to another demat.

They have chosen to go with another broker

Different brokers may offer different benefits and features for their demat accounts. Some brokers might charge less or offer better online trade platforms than others. Users often change brokers for these and other reasons. It is necessary to transfer their shares from the old demat account into the new one.

They have multiple demat accounts

A user could have multiple demat accounts. They may want to combine them into one demat account. This will require the transfer of shares.

Each case is unique because the ownership of the shares remains the same and there is no transaction. The process is not straightforward and users need to be familiar with how to transfer shares between demats.

Transferring Shares from a Demat Account to another

There are Two ways to transfer shares from one Demat to another:

  1. Manual or offline
  2. Online

To understand how to transfer shares between demats is different in each case, it is essential to have an understanding of the system that allows you to access your shares. A central depository is where shares are registered. It can be either the CDSL, NDSL. All depository participants, or DPs, are registered with one of these depositories. It is known as an intra-depository (or off-market) transfer if both your old and new demat accounts are registered with the same depositories. If they are not registered with the same depositories, it would be an inter-depository transfer. This distinction being made, let's look at the different ways to transfer shares from one demat account to another using the two methods mentioned previously.

Transfer shares from a demat to another Manually

In the case of manual transfer of shares, a delivery instruction slip or DIS is needed to be filled whether the transfer is off-market/intra-depository transfer or inter-depository. In this instance, the following steps must be followed:

  1. Please fill in the names and ISIN of the securities to be transferred. An international securities identification number (ISIN) is a 12-digit code that uniquely identifies each security.
  2. Enter the client ID for which you wish to transfer shares. This is your new demat account.
  3. Next, choose whether you want it to be an intra- or inter-depository transfer depending on the depository that your old and new accounts were associated with.
  4. Take a deep breath and sign the DIS slip. You will receive an acknowledgment receipt.

This is all there is to manual transfer of shares.

Transferring Shares from One Demat to Another Online

EASIEST, a CDSL facility that allows online transfer of shares, makes it easy. EASIEST stands to Electronic Access to Securities Information and Execution of Secured Transaction. This facility is only available to users who register on the CDSL site.

  1. Log in to the CDSL website, and click on Register Online. Next, choose the easiest option from the menu.
  2. You will need to enter the following details: DP ID (the ID of your broker), BO ID (the Beneficial Owner), which is the holder of the demat account, etc.
  3. Enter your email ID, and your phone number. A one-time password (OTP), will be sent to your registered mobile number.
  4. In the provided box, enter the OTP. After verification of your mobile number, you will be able to transfer shares online from one demat to the next within 24-48 hours.

Transfer shares from one Demat account to another?

Most people transfer shares from one broker to another because they want a better broker. Before opening a demat with a broker, it is always wise to do your research. Check for these benefits from your broker.

  1. Brokerage rates very low
  2. Transactions are simple
  3. Online trading is easy and fast with an intuitive user interface
  4. Mobile app that is safe and secure
  5. Services with value-added features

Online trading can be made easier by having a reliable broker. Angel One offers an easy way to open a demat account online for trading. It has a number of features and low brokerage fees.

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