How to transfer shares from one Demat account to another?

Want to close your Demat account but unable to do so because of shareholdings in the account? Or want to transfer shares from one Demat account to another without selling? Let’s see how to execute an off-market transfer of shares from one Demat to another.

What is Depository and Depository Participant?

A depository keeps the records of ownership of financial securities and facilitates trading of securities. A depository participant (DP) is an agent of the depository who offer depository related services to the investors through Demat accounts.

There are two depositories in India – 

• National Securities Depository Ltd (NSDL) 
• Central Securities Depository Ltd (CDSL)

The DPs can be banks or brokering firms. The DPs are linked to either NSDL or CDSL. The list of DPs registered with NSDL can be checked at https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=19 and the list of DPs registered with CDSL can be checked at https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=18. 

Here, we will see the process of transferring shares from demat account of one CDSL registered DP to another. For this, investor needs to register for CDSL Easiest.

What details to be collected before proceeding to Easiest platform?

• BO ID for demat account from which you wish to transfer shares 
• BO ID for all the demat accounts to which you wish to transfer shares 

BO ID can be checked from the account profile of your demat account. The BO ID is a 16-digit number, first 8 digits representing the DP ID and next 8 digits representing the Client ID.

How to register for CDSL Easiest?

Go to Easiest portal https://web.cdslindia.com/myeasi/Registration/EasiestRegistration

The portal has 6 stages for completing the registration –

• Demat Details – 
• Enter ‘DP ID’ and ‘Client ID’ of the demat account from which you wish to transfer the shares. 
• Tick the checkbox and click on ‘Continue’.
• OTP – 
• Enter the OTP sent to your mobile number and click on ‘Continue’.
• Account Details – 
• Create a user profile by deciding a username, choosing a security question, and entering its answer. 
• Account type – Select ‘Account of Choice (e-token)’ if you wish to transfer shares from demat account of CDSL registered DP to NSDL registered DP. Select ‘Trusted Account (Pin)’ if you wish to transfer shares from demat account of one CDSL restreeted DP to another.
• Click on ‘Continue’. A message for successful registration will appear.
• Trusted Details – 
• Enter ‘BO ID’ of the demat accounts to which you wish to transfer the shares. Click on ‘Submit’. 
• A message will appear regarding OTP sent to your mobile number. Click on ‘Ok’. Enter the OTP received on your mobile number and click on ‘Ok’. 
• The BO ID gets added as a trusted account. 
• In case more demat accounts are to be added as trusted accounts, repeat the process.
• Click on ‘Continue’.
• Grouping – 
• In case a ‘List available BO account for grouping’ appears, select the accounts you wish to link. 
• In case the list is not available, enter the BO ID you wish to link and click on ‘Submit’. 
• Click on ‘Continue’.
• Finish – A message regarding completion of registration will appear.

A mail will be received from CDSL to the registered email-id with the password for login to the CDSL Easiest. Login to CDSL Easiest https://web.cdslindia.com/myeasi/Home/Login and reset the password.

Authentication by DP

For effecting transfer of shares, the DP for demat accounts from where shares are to be transferred as well as DPs for demat account to which it is to be transferred, needs to authenticate the addition of the demat accounts to CDSL Easiest. The authentication may take 1-2 days, or you may have to follow up with the DPs. You can check the status of authentication in your CDSL Easiest. 

• Login to your CDSL Easiest https://web.cdslindia.com/myeasi/Home/Login.
• Go to tab ‘Miscellaneous’ and click on ‘Edit Trusted account’.
• Check the status for DPs. Follow up with DPs showing status as ‘Pending for authentication’.
• After authentication by DPs, reset the PIN.
• Go to tab ‘Miscellaneous’ and click on ‘Reset PIN’.
• Answer the security question set at the time of registration and click on ‘Submit’.
• Remember the new PIN, as it will be required for effecting transfer of shares.

How to transfer shares from one demat to another?

• Login to your CDSL Easiest https://web.cdslindia.com/myeasi/Home/Login.
• Go to tab ‘Transactions’ and click on ‘Setup’.
• Click on ‘Bulk Setup’. A form will appear. 
• Buy Sell Flag – select ‘Sell’ option
• Execution date – the date on which you want to transfer the shares
• Counter BOID – select BO ID of demat account to which you want to transfer shares
• Do not fill any other fields and click on ‘+’ sign on the page
• Another form will appear. 
• ISIN – Click on ‘Account ISINs’. Click on the share you wish to transfer.
• Quantity – enter the quantity you wish to transfer
• Reason for trade – select reason for trade
• Click on ‘Ok’
• The entry will appear on the page. Click on ‘Verify’ and then click on ‘Ok’ and again ‘Ok’.
• The transaction will appear on the page. Select the transaction by ticking the checkbox and click on ‘Commit’.
• Enter the PIN set in the previous stage and click on ‘Ok’.
• The transaction status will appear as ‘Authenticated successfully’.
• The transfer of shares will take place in 1-2 days. 

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