Now that you know about the basic accounts like Demat and trading accounts you might want to get knowledge about how you can transfer the shares and this article focus on various types of share transfer which you can do.
Since all of the shares that you have bought are present in your respective Demat account you will know how you can transfer the shares using your demat account to another demat account.
Transferring shares from one demat account to another demat account can be done very easily by issuing proper instructions to your depository participant (DP) through the delivery instruction slip. If you are selling your securities through the stock exchange you will ask your DP to transfer your shares from your Demat account to brokers pool account. In case of any off market transaction, you will ask your DP to transfer it directly to the concerned buyers’ demat account.
In a similar manner, securities can be transferred to your account by the instructions of the transferor (seller) to his DP. The seller will have to mention your demat account number in the DIS slip.
DIS book is somewhat similar to the cheque book and you need to handle it with the utmost care. You need to store it in a safe place and also not hand over any blank signed DIS to anybody.
You can easily transfer the shares or debentures to your name by providing the following documents to the RSTA (Registrar and Share Transfer Agent) of the company.
- Original certificate, which includes all the original documents
- Duly completed Share Transfer Form with the valid stamp
- Copy of your PAN card
- In case of sale of securities in physical mode, they can be transferred to the buyer by giving your signature to the transfer deeds.
Time line for transfer
The companies which are listed are required to transfer shares or send any kind of objection memo if required within the 15 days from the date of transfer deeds Original and all the other certifications are required for them. In case of bonds, the company is required to transfer it within the two months from the date of transfer deeds, original certificates and all other required documents.
Compensation in case of delay
You can claim the interest from the company in case of transfer delay beyond the thirty day period. you can file this at the stock exchange where company’s shares are listed.
As you have probably known by now that you need to fill up a DSL to transfer the money from one demat account to another, Following are some of the precautions which you should take while filling up the DIS
- Make sure that your client id is either stamped or printed on the DIS leaflet and not handwritten
- Make sure that the target client ID is correct
- Never hand over any blank signed DIS leaflet to anybody so that you stay away from the misuse.
- Once you have made the entry, you need to strike out the remaining rows or blank spaces to avoid the misuse.
- In any case, if the DIS book gets lost or stolen then ask your broker to stop all the transactions immediately.
- You are supposed to return all of the unused DIS leaflets once your account is closed.
There is another way to transfer the shares without getting into the hassle of DIS, and that way is online.
Just like online money transfer, you can easily transfer your shares online with the help of CDSL. It provides you with a way to transfer the shares electronically which is far more secure and reliable as well. Plus you don’t have to worry about any hassle because the login id and the password for such internet banking only stay with you.
As you have learned you can opt for any of the two ways which include DIS and online using CDSL, you can transfer your shares from one demat to another.