Demat accounts are used to hold your shares in electronic format. Similar to a bank account where you can store your money, a Demat account stores shares in dematerialized form.
SEBI has authorized only two depositories in India to store the shares of the Demat account holders. Those are National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). Your shares are held in either of these two depositories, and transferring happens between these depositories only. Share transfer can be of two types.
- Intra-depository Transfer
- Inter-depository Transfer
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Any transfer within the NSDL depositories or the CDSL depositories is known as an intra-depository transfer. Any transfer between these two depositories is inter-depository transfers. But why do people need to transfer their shares from their existing Demat account? There can be many reasons, and some are listed below.
- To keep both Demat and trading account with a single broker
- Consolidating multiple Demat accounts
- Keep your trading and investment activity separately
- Change of full-service broker to discount broker and vice-versa
- Build a firewall for long-term use
Let’s look at the process of transferring shares from your existing Demat account. HTPL provides a hassle-free transfer experience with innovative digital technology. There are two broad processes for the transfer. One is the manual transfer process that is used by a majority of stock market investors. The manual transfer process is tedious and hence we provide an easy HTPL online transfer process to simplify the work for you. Your time is valuable, and hence we bring a straightforward trading experience to your fingertip.
Online transfer of shares
HTPL offers you the easiest online transfer of your Demat Account in these five steps.
- Step 1: Access the CDSL website and click on the ‘Register Online’ link.
- Step 2: A form will appear that you need to fill with the details like the ISIN number and name.
- Step 3: Once filled, click on the ‘Print Form’ that would be downloaded. It would be transferred to the account holder’s DP.
- Step 4: The DP needs to finish the verification process, after which a password is sent to your mail-id.
- Step 5: You can now use this password to log in and begin the shares transferring
If you need to transfer funds to your trading account, then you need to go to your HTPL dashboard and follow options, such as:
- Through Payment Gateway
- Via NEFT/ RTGS/ IMPS
- Via cheque or demand draft
Let’s check the offline transfer process.
In the offline transfer system, you need to use the Debit Instruction Slip (DIS) and record the share names that you want to transfer. You must also note their ISIN number and double-check it. The transfers are made based on the ISIN number to the provided Target ID, a 16-character code. After filling the form, you need to choose whether it is an intra-depository or inter-depository transfer. Hence you must know the depository (NSDL or CDSL) in which your present shares are stored. The offline process is tedious, and people use this process as they are not very much aware of the online process. HTPL provides you with a hassle-free transfer experience at the tap of a button through its mobile trading app. The offline process takes a longer time than the online process.
About Hindustan Tradecom
Started in the year 2005, Hindustan Tradecom Group resumed its operations to become a financial powerhouse offering a complete range of financial solutions – all under one roof – with dedicated customer service & commitment to providing value for money to the clients.
We are a leading share broker, Stockbroker, and Commodity broker in Jaipur, Jodhpur, Bikaner, Kota, Rajasthan, India. If you are looking to apply for an IPO online, you can get in touch with our team at 0141-4069600 or visit our website htplonline.com.