Tuesday, October 11, 2011

HOW TO TRANSFER SHARES FROM ONE DEMAT ACCOUNT TO OTHER?

For those of us who have Demat Accounts and want to change from one Demat account to another for any reason will have to first get the holdings transferred to the new Demat Account before the account can be closed and you can fully migrate to the new account. So, if you are wondering how can you get the share holdings transferred from your current Demat account to the new one, then read on.
1.Transfer from one Demat Act to another Demat Act of the sole owner :- In case , the transfer of shares is from one Demat account to another Demat account held by the same person in his sole capacity, then he/she needs to fill delivery instruction slip giving the details of the shares to be transferred and the same shall be submitted with the depository. These delivery instruction slips are available with the depository and are like cheque leaves which we use to tranfer money from our account.
2.Transfer from Joint Demat Account :- In this case too, the delivery instruction slip will have to filled and submitted to the depository. Only difference is that here both the owners need to sign the slip.
3.From Sole Demat Account after account holders death:- In such cases the holding is transferred to the demat account of the nominee where there is nominee mentioned in the account. For cases where the holding is less than 1 lakh and there is no nomination in the account, the holdings may be transferred to the legal heir without any court order or will. For cases above Rs 1 lakhs holding without nomination, one will have to give court order or will from the deceased alongwith the death certificate for effecting the transfer.
4. From Joint Demat Account after death of one owner- In this case, the shares will be transferred to the new Demat Account of the surviving holder. The surviving holder will have to submit an application form alongwith death certificate for effecting the transfer.
5.Transfer of Lock in securities:- If the Demat has ELSS etc which has lockin then the transfer can be done only post getting them rematerialised . After rematerialisation, the same can be dematerialised in new Demat account.
6. Transfer of Holding where there is Lien :- For all holdings where there is lien marked , before transferring the same one will need NOC from the party in whose benefit the holding/stock etc is pledged.

Hope this has helped get you some clarity on the issue.

1 comment: