How to Transfer Shares from Other Brokers to Angel One’s Demat Account?

Different brokers provide different online trading platforms with their own unique interfaces, features and market analysis tools.  Sometimes, you may feel that the services being offered by one broker are superior to another. 

In such situations, it makes complete sense to quickly open a new Demat account with the new broker of your choice and transfer your existing shares to it. Let us now check out the process of transferring shares to your new Angel One account.

In case you want to know how to open a Demat account with Angel One, you can check out this page.

How To Transfer Shares From One Demat Account to Another?

There are two modes of transferring shares from your old Demat account to Angel One — online and offline. Let us check out each mode one by one.

Online Transfer of Shares

For online transfer of shares, follow the steps mentioned below:

Step 1: First, you need to get registered with CDSL Easiest, after which further steps will need to be taken. The process to get registered to CDSL Easiest can be found here. 

Step 2:  After the depository participant, i.e. CDSL, has finished verifying your application, a password will be sent to your email ID. Using the provided password, log in to your CDSL Easiest account. Now you can start the actual process of transferring of shares.

Note: At this point, you need to have the following information handy with you:

1. ISIN number – The ISIN or the International Securities Identification Number is a 12-digit code required to identify securities such as funds, equities, bonds, stocks, debts, and more. It is essential to correctly enter the ISIN number of the shares you want to transfer as the transactions will be processed based on it.
2. BO ID – This is the Beneficiary Owner ID you are sending the shares to. The first 8 digits of the 16-digit BO ID is the DP ID (that will be the same throughout Angel One), and the last 8 digits are termed as Client ID (will be unique for every client).
3. Quantity – The quantity of shares that you want to transfer.

Step 3: After logging in, click on Transaction and select Setup. Thereafter, choose the Bulk Setup option from below.

Note: If you are transferring shares without closing your previous account, use the ‘Off-market Transfer’ process.

Step 4: Click on the TRANSACTION tab. Enter the execution date and the Beneficiary Owner ID. Select NA under Entity Identifier.

Note: Details such as Counter Party Market Type, Exchange ID, Market Type, Counter Party Exchange ID, Settlement ID and Counter Settlement ID need not be entered for off-market transfers.

Step 5: Click the ‘+’ icon to start adding the ISIN number, Quantity and all other details, including the reason for trade of shares out of the drop-down menu. 

Note: If the off-market transfer is not a gift/self-transfer and involves a consideration, stamp duty must be paid to CDSL online even before making the transfer.

Step 6: Once the details are entered, click on the SUBMIT button. 

Step 7: Upon verification, click on COMMIT and confirm with the OTP received on your registered mobile number and email, and the CDSL Easiest PIN sent to your registered email ID.

The application will then be sent to the DP who will execute the transfer.

Manual/Offline Transfer of Shares

In case of the manual transfer of shares from one Demat account to another, it is important to know whether the shares being transferred are maintained and held CDSL or NSDL. This is because the mode of transfer of the shares is dependent on the depository with which your broker is associated. 

If the account holder’s existing and new brokers are both associated with the same depository, there will be an intra-depository transfer (or an off-market transfer) of shares. If, however, the existing and new brokers are asociated with different depositories, there will be an inter-depository transfer of the shares.

Intra-depository Transfer

When an intra-depository transfer or an off-market transfer is being made, the account holder must use a Debit Instruction Slip or a DIS booklet that is provided by their Depository Participant (DP). 

Once you have the DIS booklet and ISINs ready, follow these steps:

Step 1: Enter the names of the shares that are to be transferred using their ISIN codes.

Step 2: Next, the target client ID has to be entered. It is a 16-character code which includes the ID of the client and the ID of the DP. It basically denotes the new Demat account.

Step 3: This is an important step as it involves the selection of the method of transfer. If the mode of transfer is an intra-depository or an off-market transfer, then the column titled ‘off-market transfer’ has to be selected. If the mode of transfer is inter-depository, then the ‘inter-depository’ column should be selected. It is important to be cautious when selecting this option.

Once the DIS slip has been filled in, there are a few final steps that need to be taken:

Step 4: The filled-in and signed DIS slip must be submitted to your existing broker or DP. Then collect the acknowledgement receipt.

It will take between 3-5 business days for the existing broker to transfer the required shares from the old Demat account and for the new broker to receive the shares in the new account. The current broker may apply a few charges for this procedure, and the rates vary from one broker to another.

The transfer of shares may happen under the following special circumstances:

1. Transfer Between the Same Depository and No Credits Due

This is a fairly simple case. In case you have credits or debits due on your account with the present broker, and you are transferring to a broker under the same central depository, then you can initiate the brokerage account transfer process yourself and there are no additional permissions required.

2. Transfer Between Different Depositories

In case you are transferring to a broker registered with a different depository than your current one, then you need to submit a Debit Instruction Slip (DIS) to your present broker in order to transfer shares between brokers. This process can take up to 2 business days. 

Once it is done, you may close the existing Demat account with the broker and start trading with the new one. Make sure to get a stamped acknowledgement of Demat account closure from your old broker.

3. Transferring Account But With Open Positions in the Market

This is a fairly common scenario as it is not always possible to time one’s brokerage account transfer process with exiting the open market positions. The process is fairly simple and hassle-free in the case of equities. All your open positions are transferred to your new account. 

However, in the case of Futures and Options (F&O) positions, this may not be possible. So it is advisable that you close any open F&O positions before transferring your account to a different broker. 

In case you have any debits or credits due in the account, these will have to be cleared first. Debits are any charges you need to pay to the broker, and credits are any amounts due to you by the broker. Make sure you take acknowledgement of the cleared debits/credits from the broker to avoid any issues in the future.

4. Transferring Account With Credits Due

This is usually the most complex scenario in the brokerage account transfer process. Credit here means anything due to you. It could either be shares that you placed a buy order for, but which have not yet been credited to your Demat account. Alternatively, it may mean that you have sold certain shares and the proceeds have not yet been credited to your Demat account. In each case, you are owed something from the broker in the middle of the brokerage transfer process and these have been held back by the broker. To deal with such a situation, you can follow these 3 approaches:

1. Check if there are any debts due to your broker from your account. It is likely that the broker may have held back your credit on account of these dues. If this is the case, authorise your broker to deduct these dues from your credit.
2. In case, the matter is not resolved by the previous step, you should immediately write a letter to your broker to credit any amounts or equities due to you with immediate effect. In most cases, the broker transfers your credit within a week. Once this is done you should close your old Demat account.
3. In the rare event that your credits have still not been processed by the broker, you can further escalate the matter by writing to whichever depository (NSDL/CSDL) your broker is affiliated with, along with the relevant stock exchange. (NSE/BSE) You can even consider filing a written complaint with the SEBI as a last resort.

Reasons for the Transfer

There are two primary reasons why an investor transfers shares from one Demat account to another:

1. They are opting for another broker – If an account holder’s requirements from his/her current broker change, it calls for a new broker and therefore the opening of a Demat account as well. In such a case it is also necessary to transfer the shares from the old Demat accounts to the new one. This may happen due to a variety of reasons such as:

• Smaller brokerage fees
• Better online trading platform and services ie. speed and ease of transaction
• Better security
• Value-added services such as market intelligence reports

2. They hold multiple Demat accounts – The user may hold multiple Demat accounts and may now want to merge them into a single Demat account, necessitating the transfer of shares. 

In each case, the ownership of the shares remains under the same name and hence there is no transaction involved. 

Why Shouldn’t You Sell Your Investments Instead?

Several individuals sell their investments, withdraw that money and deposit the same into the same stocks with the new stockbroker. You should not follow that route because:

1. Capital gains tax – The gains you receive upon withdrawing your investment will become capital gains. The profits that you earn from your investment will be taxed. 
2. Fees – In addition to taxes, you may also have to pay certain fees while selling and repurchasing the same investments. 

Therefore, in the above process, you will not be able to transfer the same amount of wealth that you originally had in your old Demat account.

How To Ensure That the Transfer Is Successful?

• Understand the process of transfer thoroughly.  
• Contact the new stockbroker to verify their requirements and policies regarding the transfer. For instance, if you have a margin account, it is best to inquire about the requirements for such an account with the new stockbroker. 
• Verify the required documents and the details regarding the transfer so that the entire process of moving shares between brokers can be hassle-free.

Conclusion

Now that you have a detailed view of the process of moving shares between brokers, research your new stockbroker before making the leap. Having a good broker can make all the difference in online trading. 

You can open a free Demat account without any hassle with Angel One and enjoy advanced trading features and low brokerage charges.

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