Following opening a Demat account, one may explore further into the additional services it offers. A Demat account, in addition to wanting to hold stocks and bonds, can transmit shareholdings to the other Demat account. It aids in the aggregation of shares, making it easier for an owner to see a comprehensive picture of all his shareholdings.
A trader may have to move stocks from one account to another for a variety of reasons. The following are some plausible explanations:
- One of the motivations may be to consolidate all of the shares under one roof to make management easier.
- Additional motive might be the investor’s desire to switch to a new registered user that provides greater yields at a reduced cost.
- Many stockholders may choose to move stock from a Demat account to the other if they had an unpleasant situation with their former stockbroker.
- People move stocks whether they wish to experiment with new sorts of investments or for various time periods, or if customers wish to go from cheap brokers to full-service stockbrokers. This is commonly observed in persons who enjoy taking a danger.
Process of Transferring Shares from One Demat Account to Another
Transferring stocks from a Demat account to another. In summary, the procedure of transferring shares from one Demat account to another is outlined below.
- The investor completes the DIS (Delivery Instruction Slip) and sends it to his or her present stockbroker.
- The broker transmits the DIS document or requests to the deposit.
- Your current stocks will be transferred to the Demat account by the Deposit.
- When all of the stocks have been moved, they will appear in the investor’s new Demat account.
Process of Transferring Shares from One Demat Account to another Online
Stocks can also be transferred electronically from one Demat account to the other. The stages below provide an overview of the procedure.
- By clicking on the “Register Online” option on the CDSL or NSDL website, the trader must register his name.
- The next step is to choose an alternative for a service called “Easiest- electronic accessibility to stocks data and transactions are done execution.”
- Following that, the shareholder must supply his information.
- After completing the form, the investor can print it and deliver it to the Depository Participant.
Aspects to remember when transferring stocks
There are certain things to remember for any investor when they wish to transfer the shares. Firstly, the investor’s present stockbroker may charge a fee for this operation. The fees differ from one broker to the next. Secondly, if the investor wishes to cancel his or her Demat account with the present broker, the procedure is available for free. If the investor wishes to shut the Demat Account, he must return the unutilized DIS to the brokers.