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Using CDSL Easiest: How to Transfer Shares from Zerodha to another CDSL Demat Account

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How to Transfer Shares from Zerodha to another CDSL Demat Account Using CDSL Easiest?

Transfer of Shares from Zerodha to another CDSL Demat Account: Things to Remember

Why Transfer Shares from Zerodha to another CDSL Demat Account?

Conclusion

Transferring shares between demat accounts is a common practice for investors. If you have a Zerodha demat account and need to transfer securities to another CDSL demat account, you can do so efficiently through CDSL Easiest. Go through the steps to transfer shares from your Zerodha account to another CDSL demat account using the CDSL Easiest platform.

Open an account with Zerodha.

How to Transfer Shares from Zerodha to another CDSL Demat Account Using CDSL Easiest?

These are the steps that you need to follow in sequence, in order to facilitate transfer of shares:

Step 1: Register on CDSL

Before you can initiate the share transfer, you need to register on CDSL Easiest. If you are unsure how to do this, refer to Zerodha’s guidelines on how to register for CDSL Easiest using your Zerodha demat account.

Read and find out – How to Register for CDSL Easiest?

Step 2: Log In to CDSL Easiest

Once you have signed up, log in to the CDSL Easiest platform by visiting the web address http://web.cdslindia.com/myeasitoken/home/login.  

Step 3: Set Up the Transfer

  • After logging in, click on “Setup” under “Transactions.”
  • Next, click on “Bulk Setup.”

Step 4: Initiate the Transfer

  • Click on “Transaction” and enter the execution date for the transfer.
  • Enter the Beneficiary Owner ID (BOID) of the person to whom you want to transfer the securities.
  • Select “NA” from the drop-down menu in the Entity Identifier.

Step 5: Select Securities and Provide Details

  • Click on “Account ISINs” and select the ISINs (International Securities Identification Numbers) for the securities you want to transfer from your Zerodha holdings.
  • Enter the quantity of shares you wish to transfer.
  • Choose the reason for the trade. Note that if this off-market transfer involves consideration (not a gift or self-transfer), you must pay stamp duty to CDSL online before proceeding.

Step 6: Submit the Transfer Request

Click on “Submit” to initiate the transfer request.

Step 7: Verification

Next, click on “Verify.” For off-market transactions, you do not need to fill in Exchange ID, Counter Party Exchange ID, Counter Party Market Type, Market Type, Settlement ID, and Counter Settlement ID.

Step 8: Confirmation

  • Click on “Commit.”
  • Enter the OTP received on your registered mobile number and email for verification.

Step 9: Enter CDSL Easiest PIN

  • Enter the 8-digit alphanumeric CDSL Easiest PIN received on your registered email ID. Do not confuse this with the 6-digit CDSL TPIN. If you are a first-time user, you must change the default PIN by visiting the CDSL Easiest platform and following the instructions in the “Change PIN” section.
  • In case you did not receive the PIN or have forgotten it, you can reset it through the CDSL Easiest platform.

Step 10: DP Confirmation

  • The transfer request is now sent to the Depository Participant (DP) for confirmation.
  • Once the DP confirms the request, the transfer will be processed.

Transfer of Shares from Zerodha to another CDSL Demat Account: Things to Remember

You have to keep in mind that:

  • Transfer requests are not processed immediately. Zerodha needs to verify the availability of shares in the customer’s Demat account to avoid complications. For off-market transfer requests submitted before 6 PM on trading days, processing occurs on the same day. Requests placed after 6 PM will be rejected.
  • Shares and mutual funds under lock-in cannot be transferred using this method.
  • Transfer charges for off-market transactions are 0.03% of the transfer value or ₹25 per ISIN (whichever is higher), plus 18% GST. Ensure you maintain the required balance to cover these charges.
  • To prevent the rejection of share transfer, refrain from selling the shares you are transferring before the easiest transaction is approved. Also, make sure your trading account balance is not negative during the transfer process.

Why Transfer Shares from Zerodha to another CDSL Demat Account?

Transferring shares from Zerodha to another CDSL demat account using CDSL Easiest is a common financial maneuver that investors often contemplate for various reasons.

Diversification

One of the primary reasons for transferring shares from Zerodha to another CDSL demat account is the need for portfolio diversification. Investors often seek to spread their risk across multiple brokerage firms or demat accounts to mitigate potential losses. By holding assets in different accounts, they can reduce the impact of adverse events specific to a single platform.

Better Service

Another motivation for transfer is to access better services or features offered by another brokerage or demat provider. Some investors may find that their current provider does not offer certain financial products or research tools they require. In such cases, transferring to a different CDSL demat account can be a strategic move to access more comprehensive services.

Lower Costs

Cost-conscious investors may also choose to transfer shares to another demat account to take advantage of lower fees or commissions. Different brokers have varying fee structures, and by moving to a brokerage with more competitive rates, investors can potentially save on trading expenses over time.

Regulatory Compliance

Changes in regulatory requirements can also prompt the transfer of shares. If Zerodha or any other brokerage platform undergoes regulatory changes that affect an investor’s ability to trade or manage their holdings, transferring shares to a compliant demat account is essential to ensure adherence to regulatory guidelines.

Estate Planning

Estate planning is another key driver for transferring shares. Investors often want to ensure a smooth transition of their assets to heirs or beneficiaries. By consolidating or distributing shares strategically among different demat accounts, they can simplify the inheritance process and avoid potential complications.

Better Research and Analysis

Some investors may seek advanced research and analytical tools that may not be available on Zerodha. By transferring shares to a brokerage that provides more sophisticated analysis and insights, investors can make more informed decisions and potentially enhance their returns.

Read and know – Zerodha to Upstox: How to Transfer Shares?

Geographical Considerations

Changing geographical locations or financial institutions can also necessitate share transfers. If an investor moves to a different region or country, they may prefer to hold their investments in a demat account with a local brokerage for convenience and ease of access.

Open an account with Upstox.

Conclusion

Transferring shares from your Zerodha demat account to another CDSL demat account using CDSL Easiest is a convenient and secure process. By following these steps and adhering to the guidelines, you can ensure a smooth and hassle-free transfer of your securities. Always stay informed about any charges and deadlines to avoid any unexpected complications during the transfer process.


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