Skip to main content

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. 
Follow at - Telegram   Instagram   LinkedIn   Twitter

Labels:

Comments

Post a Comment

Popular Posts

Payment of Agency Commission to Agency Banks (ABs) and Disbursement of Government Pension by ABs

Reserve Bank of India (RBI) has issued guidelines on the conduct of Government business by Agency Banks (ABs), payment of agency commission to ABs and disbursement of Government pension by ABs. Who are ABs? ABs mean all Public Sector Banks (PSBs), scheduled Private Sector Banks (PVBs), scheduled Payments Banks (PBs), and scheduled Small Finance Banks (SFBs) appointed by the RBI under Section 45 of the RBI Act, 1934, by mutual agreement, to carry out Government banking business of the Central Government (CG) / State Governments (SGs). What is agency commission? Agency commission means the remuneration paid by the RBI to an AB in consideration of it acting as an agent of the RBI in the conduct of general banking business of the CG and the SGs at the places and in the manner specified in the agreement between the RBI and the bank, with the exception of the functions relating to the management of the public debt. What are the guidelines on appointment of ABs? Any eligible bank which intend...
Post a Comment
Read more

Deposits between a person resident in India and a person resident outside India

Reserve Bank of India (RBI) has updated the regulations on deposits between a person resident in India and a person resident outside India. What are the restrictions on deposits between a person resident in India and a person resident outside India? No person resident in India shall accept any deposit from, or make any deposit with, a person resident outside India. However, the following deposits are exempted – Deposits held in rupee accounts maintained by foreign diplomatic missions and diplomatic personnel and their family members in India with an authorised dealer. Deposits held by diplomatic missions and diplomatic personnel in special rupee accounts namely Diplomatic Bond Stores Account to facilitate purchases of bonded stocks from firms and companies who have been granted special facilities by customs authorities for import of stores into bond. The funds in the account may be repatriated outside India without the approval of the RBI. Deposits held in accounts maintained in foreig...
Post a Comment
Read more

Credit Derivatives

Reserve Bank of India (RBI) has issued directions on credit derivatives. What is Credit Derivative? Credit derivative means a derivative contract whose value is derived from the credit risk of an underlying debt instrument or an index of underlying debt instruments. What is Credit Default Swap (CDS) and Total Return Swap (TRS)? Credit Default Swap (CDS) means a credit derivative contract in which one counterparty (protection seller) commits to pay to the other counterparty (protection buyer) in the case of a credit event with respect to a reference entity and in return, the protection buyer makes periodic payments (premium) to the protection seller until the maturity of the contract or the credit event, whichever is earlier. Total Return Swap (TRS) means a credit derivative contract under which one counterparty (total return payer) commits to transfer the entire economic performance of a reference asset to the other counterparty (total return receiver), and, in return, receives a pre-d...
Post a Comment
Read more

Credit Cards and Debit Cards

Reserve Bank of India (RBI) has issued directions on issuance of credit cards and debit cards. To whom are the directions applicable? The directions are applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Non-Banking Financial Companies (NBFCs) for all layers – NBFC-Investment and Credit Companies (NBFC-ICC) NBFC-Factor  NBFC-Micro Finance Institutions (NBFC-MFI)  Housing Finance Company (HFC)  What is a credit card? Credit Card is a physical / virtual payment instrument issued with a pre-approved revolving credit limit that can be used to purchase goods and services or draw cash advances. What is a debit card? Debit Card is a physical / virtual payment instrument linked to a Savings Bank / Current Account which can be used to withdraw cash, make online payments, do Point of Sale (PoS) terminal / Quick Response (QR) code transactions, fund transfer, e...
Post a Comment
Read more

Lead Bank Scheme (LBS)

Reserve Bank of India (RBI) has issued guidelines on the Lead Bank Scheme (LBS). Who is a Lead Bank? RBI designates a commercial bank as Lead Bank in each district, to coordinate the efforts of the banks, Government, National Bank for Agriculture and Rural Development (NABARD) and other stakeholders at the district level to improve credit flow to the priority sectors and promote financial inclusion in the district. 12 public sector banks and 2 private sector banks (Jammu & Kashmir Bank and ICICI Bank) have been assigned lead bank responsibilities, covering 778 districts across the country. What appointments are made under the LBS? Every lead bank shall appoint a Lead District Manager (LDM) in each district where it has the lead bank responsibility, to exclusively oversee and coordinate the implementation of the LBS in the district. NABARD shall appoint a District Development Manager (DDM) for each district to act as a liaison between NABARD and the district-level banking and financ...
Post a Comment
Read more