Demat Account Online – Uses & Transfer of Shares – Axis Direct
Apr 17, 2018 | Source: www.flame.org.in
How to Transfer Shares from Demat Account
Most of us know what is dematerialisation of securities, advantages of holding shares in demat form and how to manage your investment in demat mode.
The below write-up will elaborate more on how to transfer shares from demat account to another demat account.
Demat mode: Shares and debentures in your demat account can be transferred to another demat account by issuing appropriate instructions to your depository participant (DP) through delivery instruction slip (DIS). If you sell your securities through the stock exchange, you will instruct your DP to transfer shares from your demat account to the brokers’ pool account. In case of off market transaction, you will instruct your DP to transfer to the concerned buyer’s demat account.
Similarly, securities can be transferred to your demat account by the instruction of the seller (transferor) to his DP. The seller will have to mention your demat account number in the DIS.
The DIS book is similar to a cheque book and it needs to be handled with the same care as a cheque book. Accordingly, you will always store the DIS book in a safe place in your custody and not hand over signed blank DIS to anybody.
Physical certificates: You can transfer shares or debentures to your name by forwarding the following documents to RSTA (registrar and share transfer agent) of the company.
Duly completed Share Transfer Form(s) with valid stamp
Copy of PAN card
In case of sale of securities in physical mode, they can be transferred to the buyer by affixing your signature transfer deeds.
Time line for transfer: Listed companies are required to transfer shares or send the objection memo within 15 days from the date of lodgment for transfer deeds, original certificates and all other required documents. In case of debentures / bonds, the company is required to effect the transfer within two months from the date of lodgment for transfer deeds, original certificates and all other required documents.
Compensation in case of delay: You are entitled to claim interest from the company in case of delay in transfer of shares beyond the 30-day period. For this, you can file for arbitration at the stock exchange where company’s shares are listed.