How to consolidate multiple demat accounts? Here's a step-by-step guide
If you hold multiple demat accounts, managing and maintaining them can become challenging over time, especially if only one account is actively used to hold your securities while the others remain inactive. The ease of opening demat accounts has led to many people having multiple accounts that they rarely use.
In such a scenario, it is advisable to close the other demat accounts and consolidate your holdings into a single account. Although the process may initially seem daunting, it is actually a relatively simple formality that can be completed in just a few steps.
Delivery Instruction Slip (DIS): To consolidate demat accounts, use an off-market transfer of shares into the target demat account. Use a Delivery Instruction Slip to transfer your holdings from one demat account to another. This form allows you to inform your Depository Participant (DP) that you want to transfer your shares from one account to another. Provide accurate and complete details of both source and target demat accounts, including the ISIN of the securities, and DP ID. Ensure the DIS is signed properly by account holders.
Settle Outstanding Credits: Before initiating the transfer, confirm there are no liens or outstanding credits owed to the broker in the source demat account. Settle any dues before submitting the DIS.
Transfer: After submitting the Delivery Instruction Slip, the Depository Participant will review the form and check for any errors. Once the form is validated, the DP approves the request and instructs the transfer of shares to the target demat account. This allows you to transfer shares from all other demat accounts to the target account. This off-market transfer does not have any capital gains tax implications. Once the other
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