Demat accounts, which hold shares in the electronic form are now a must, if you want to buy and sell shares through the stock exchanges.
But, at times you may want to transfer shares to a friend or a relative without the need for a broker.
Transferring shares from one demat acccount to the other
As mentioned you may want to transfer shares to a spouse. In this case what you first need to do is fill the delivery instruction slip. Every broker sends you a delivery instruction slip, which you need to fill for off-market transactions.
If you look at the delivery instruction slip, you will clearly see off market transactions. Since you have not bought the shares through the exchange, you need to fill the slip and transfer the shares to the target .
So, you fill in the complete details of the target person, including his or her demat account number DP ID etc. Once you have filled the same, you can handover the slip to the Depository Participant and take an acknowledgement.
How to fill the slip to transfer shares to another demat account?
You will see a few details on the delivery instruction slip. For example you will see the ISIN.
This is nothing but a number that is allocated to each share. You must fill the same, as also the name of the company.
Apart from this you will need the DP ID and the account number of the beneficiary. Make sure that you have the same ready with you. You must ensure that the target DP account number and ID is correct.
When shall the beneficiary receive the transferred shares?
The beneficiary should receive the shares in his or her account the next day. There are hopes that like RTGS and NEFT transfer of money, which takes 30 minutes, will be applied for transfer of shares.
Charges for transferring shares from one account to the other?
The charges really defer from one broker to the other. There are many individuals who need not fill the delivery instruction slip, if they are trading electronically or online.
For example, Sharekhan credits your account directly if shares are bought and when shares are sold there is a direct debit. This is an easy system and you do not have to fill all the details, over and over again.
As we mentioned earlier charges would vary and you need to check with your broker for the same.
Cross check the delivery instruction slip
Make sure that you check the delivery instruction slip is stamped and the DP ID and client ID is mentioned on the same. This is the job of the broker. In case you have misplaced the delivery instruction slip, please inform the broker.
Also, before filing you need to ensure that the Client ID and demat account number is correct. In case you are not using the Delivery instruction slip, you might want to surrender the same.
All in all, you can meet the broker and ask him how to understake an offfmarket transaction.