You may already be aware a demat account is a mandatory prerequisite for investing in the share market. The Securities and Exchange Board of India (SEBI) made it compulsory to hold a demat account if you want to invest in the Indian share market. Demat accounts facilitate storing securities such as shares, mutual funds, exchange-traded funds (ETFs), etc. They store these securities in electronic format. So, they are a safe and convenient means to hold our securities. Several financial firms known as Depository participants (DP) are now offering demat account services. Some of them are also providing a free demat account. Share India is one such reputed firm. The demat account allows investors to trade in all market segments.
One can open a demat account with Share India to avail of all its brokerage services. However, those who already have a demat account can also benefit from its world-class services. All he needs to do is to transfer his demat account to Share India. Just like funds from one bank account to another, it is possible to transfer your demat account holdings from one DP to another. So, if you are considering switching brokers, avail this demat account transfer facility for better services. Share India offers the same benefits for transferred demat accounts available to those directly opened with it. Demat account transfer also has some benefits. Let’s take a look at them before diving into the transfer process.
Benefits Of Transferring Demat Accounts
1. Streamlining of securities
As many brokers now claim to provide a free demat account, some investors open multiple demat accounts. While owning different demat accounts may have advantages, you must dole out more cash as brokerage charges. More importantly, your securities lay in different demat accounts, making it inconvenient to track them. So, it is better to consolidate all these spread-out assets in a single demat account.
2. Find better services
Numerous DPs provide brokerage services today. However, the kind and quality of services they provide vary very much. So, switching brokers is a good idea if you are searching for superior services. A robust demat platform is essential to trading in stock markets. If your current broker cannot provide satisfactory services, you should transfer your demat account to another firm. Firms like Share India not only offer a free demat account but provide top-notch services. It designed its platform with software to deliver excellent services.
How to transfer your demat account to Share India
To change the ownership of your demat account from one broker to the other, you will have to transfer all your holdings from the current broker to the new demat account. There are two ways to transfer demat accounts from one broker to another. The first one is the offline method, which involves some paperwork too. The second one is a completely online process. Share India provides both these methods for transferring demat accounts. You can choose any of the two at your convenience.
Offline transfer of demat account
Follow the steps mentioned below to transfer your demat account manually.
Step 1: Get the Debit Instruction Slip or DIS from your existing stockbroker and fill it out. Provide the Beneficiary Owner Identification Number (BO ID) of both the current and new demat accounts. Mention the details of the shares, like their name and quantity. Also, provide the International Securities Identification Number (ISIN) of the shares. ISIN is a 12-digit number that helps verify the financial firm’s authenticity.
Step 2: Sign the DIS booklet. Ensure you do it the same way you did while opening the demat account.
Step 3: Recheck the DIS slip and submit it to your broker. Collect the acknowledgement slip from it.
The DP shall verify the DIS submitted by you. Upon successful verification, the transfer of your demat account will take place in 3 to 5 working days. Share India will also inform you regarding the transfer immediately. Visit their online portal and log in with the new credential to check the same.
Online process of demat account transfer
If you prefer the online method, here is what you can do to transfer your demat account to Share India.
1. Register on the website of Central Depository Services Limited (CDSL) or National Securities Depository Limited (NSDL).
2. Once registered, log in to your account using the login id and password sent to your email.
3. Go to the transactions section and proceed to the setup option.
4. Click on ‘bulk setup’ followed by ‘transaction.’
5. Enter details like execution date, BO ID, ISIN, the number of securities transferred etc.
6. Submit and verify the transfer request before the final confirmation.
7. Finally, enter the 8-digit alphanumeric depository Pin you set up while registering.
Your demat account transfer request shall get processed after verification by the existing broker. Your Share India free demat account will be active in just three days.