Investors might need to transfer shares from their Demat account to another account. But due to the lack of proper information, they fail to do so. There are two common instances of transferring your shares. First, Investors want to transfer shares from one broker to another broker. Second, Investors want to transfer shares in another Demat account with the same broker.
Let us discuss in detail how you can transfer shares in both these cases.
First Case
Suppose, you have a Demat Account with Broker A and have opened a new Demat account with Broker B. Now, you want to transfer all your shares from Broker A (existing broker) to Broker B (new broker).
Usually, there are two documents required to transfer your shares. In this scenario, you will require a Depository Instruction Slip (DIS) from your Broker A (existing broker). On the other hand, you will have to collect a Client Master Report (CMR) copy from Broker B (new broker).
Now you have to fill your DIS and CMR copy and submit these two documents to Broker A (existing broker account from which you want to transfer your shares). Once you have submitted your documents, it will take one week to transfer your shares from Broker A to Broker B.
Note: Transferring shares from your existing broker (Broker A in this case) to a new broker’s account (Broker B in this case) might attract charges if you keep your Demat account with Broker A open. If you close your account and transfer the shares to Broker B, you won’t be charged from Broker A.
Second Case
Suppose, you and your brother, have a Demat Account with Broker A. Now, you want to transfer your shares from your account to your brother’s account. (You cannot have two different Demat accounts with a broker, so you can only transfer to another Demat account with the same broker).
In this scenario, to transfer your shares to your brother’s account, you will have to collect a Depository Instruction Slip (DIS) from your broker. Then you have to fill up the DIS form and submit it to your broker. In a week, your shares will be transferred from your account to your brother’s account.
Here, you do not require a Client Master Report (CMR) copy from your broker, as your Broker already has your CMR. So here, you will only need to submit the DIS form to transfer your shares.
Note: You might attract charges while transferring your shares from your account to your brother’s account. The charges will vary from one broker to another. So, before transferring your shares, please consult with your Broker regarding the charges.
Conclusion
So, if you want to transfer your shares from your Demat account to another, you can follow the above steps to transfer seamlessly.
