Transfer of shares: All you need to know

The procedure of transferring the shares (a.k.a. securities), as per guidelines laid down by the regulatory authorities can be done both digitally and manually. They are equally secure and widely used methods. However in the wake of enhanced digitalisation of processes, many users prefer to go the digital way for speed and convenience

Manual procedure for transferring securities
 

• Please get a delivery instruction slip (DIS) from your Depository Participant (DP) where you hold your demat account and submit it to your DP by filling up all the mandatory fields.
• Mandatory fields would include the following:
  • Target DP ID of Metra Trust – IN304203
  • Target Client ID of your Metra Trust demat account
  • DP Name - Metra Trust
  • Reason Code / Reason-Purpose
  •  ISIN, Security Name, Quantity (in figures & in words)
  • Execution Date
  • Signature of demat account holders
• You will need to submit the DIS slip to your existing DP where you are holding your demat account. The DP may charge for this transfer. This amount may vary from DP to DP. However, if you close your demat account and the pattern of holding of your demat account and your Metra Trust demat account are the same, it is free of cost.

Digital process for transferring securities:
 

1. Demat account with NSDL to Metra Trust demat account with NSDL:

You can transfer securities digitally within your demat accounts with NSDL by using NSDL Speed-e facility.  An e-token based user can log in with the help of e-token and can transfer securities to any demat account of his / her choice.

You can get more details on NSDL website: https://eservices.nsdl.com/ or FAQs - NSDL

2. Demat account with CDSL to Metra Trust demat with NSDL:

You can transfer shares from demat account with CDSL to your Metra Trust demat account with NSDL via CDSL Easiest facility. Below are the steps

1. Register in CDSL Easiest
2. Opt for e-token for offmarket transfer
3. Submit form to your DP
4. Wait for Approval from your DP
5. Login to CDSL Easiest and initiate transfer

You can get more details on CDSL website: CDSL | EASIEST (cdslindia.com)

How can you use your Metra Trust demat account?
 

1. For applying in an IPO through ASBA, simply use your Metra Trust demat account number by navigating to Investment- Invest into IPO-ASBA
2. You can link your Metra Trust demat account with your broker for receiving credits of securities in your demat account
3. You can use your Metra Trust demat account while subscribing for Sovereign Gold Bonds
4. You can also receive credits of your Mutual Fund units or transfer your existing Mutual Fund folio to your Metra Trust demat account
5. You can transfer securities from your other demat accounts with NSDL or CDSL to your Metra Trust demat account maintained with NSDL

Notes:

1. India has two depositories namely the National Securities Depository Limited (NSDL) and the Central Depository Services India Limited (CDSL). The transfer may either be intra-depository or inter-depository.
   1. Intra-depository transfer: If the transfer is within a depository itself (NSDL to NSDL or CDSL to CDSL), it’s called intra-depository transfer.
   2. Inter-depository Transfer: This is valid when the transfer is from one depository to another (NSDL to CDSL or CDSL to NSDL).
2. Please do ensure to evaluate Tax implications before transferring shares from one demat to other demat. In case of transfer of shares to same individual, there will be no added tax liability as long as an audit trail and required documents are available.
3. You may need to reach out to your broker holding trading account for sell of securities if your demat account is not linked with trading account.
4. International securities identification number (ISIN): It’s a unique ID number to identify each of your shares in your demat account. You can get it from stock exchange website of NSE and BSE or your demat account statement

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.