Unlisted share trading has become a new norm for Indian investors. Thanks to the ease of availability, accessibility, and growing awareness about the complex investment terms, the number of investors in unlisted share space is dramatically increasing. However, many points are left untouched and need clarification. One such topic is transferring of shares.
In this write-up, we will talk about transferring shares offline and the documents required. So what’s the delay? Let’s simplify your journey with a quick understanding of EASI and EASIEST facilities.
EASI – EASIEST Facilities Explained
Transferring shares is perhaps the biggest pain point when talking about share trading. Central Depository Services Limited (CDSL) introduced EASI and EASIEST facilities to address these pain points. Wondering what these are? Let’s learn about them.
What is EASI?
Referred to as Electronic access to securities information, EASI is an easy-to-operate internet-based facility that allows Demat Account Holder to access their Demat Account directly from the CDSL website anytime, anywhere to avoid back-office depository participation, through which you would have opened your Demat account.
What is EASIEST?
Referred to as Electronic access to securities information and execution of secured transactions, EASIEST is just an upgraded version of EASI, facilitating the features that were missing from EASI. This facility allows the Demat account holder to submit, freeze, off-market, inter depository, and early pay-in debit instruction from the Demat account.
However, not all the brokers are facilitating these two facilities. So, now coming to question, what if your broker is not providing either of the aforementioned facilities? How would you transfer your shares offline?
No worries, we will explain the process to you.
This process is a bit time-consuming and requires a lot of patience. We have done this many times. So, get set and go – here comes the Delivery Instruction Slip!
How to transfer shares offline? Explained in easy points
When you transfer your shares to another Demat account, you must request a DIS booklet. With this in mind, DIS booklets are issued by brokers upon request.
Here is a step-by-step process to transfer shares using DIS slips:-
- DP ID – In general, this is the broker’s ID which is usually already filled.
- BO ID – It is your eight-digit custom ID that you can easily get from your broker.
- First Holder’s Name – Fill in your or the account holder’s name.
- ISIN – It refers to a unique company code, so you need to fill in the code of the company you are transferring shares to.
- Security Name – Fill in the name of the company you are transferring the shares.
- In Figure – You just need to fill in the number/quantity of shares in this column.
- In Words – The same figures (quantity of shares) needs to be mentioned in words.
- Total Instructions Used – Fill in the total number of companies you are transferring your shares to.
- Consideration amount/reason for the transfer – Here, you just need to give the reason. So, make sure to provide an appropriate reason, and you can jump straight to the counter DP IT Part.
- Counter DP ID – Counterparty ID refers to those first eight digits of BOID.
- Counter Client IT – This refers to the second eight digits of BOID.
Disclaimer: If the transaction occurs between two CDSL accounts, mention the counter party’s BOID under the instruction type option/off-market (BO Accounts). However, if the transfer is between CDSL and NSDL, just mention the counter party’s BOID under the instruction type option/Inter Depository (14 digits followed by two letters).
- Counter BO/CM Name – Name of the party you transfer the shares to.
- Your Signature – Add your signatures, and that’s all!
Whoa! You’ve come so far. This is the process of transferring shares offline. If you still need assistance, just refer to the following images.
Documents Required For Transfer Of Shares
Gone are the days when share trading used to be a complicated game. Stockify has simplified unlisted share trading like never before. Bringing the best performing pre-IPO shares from top companies, we allow you to multiply your investment multiple times. With a simplified buying, selling, and transferring process, we’ve made share trading quick and simple.
Here are the documents one needs for unlisted share trading.
KYC Documentation – Aadhaar And Pan Card
You will need to show/submit these documents for initial KYC verification for unlisted stock trading.
Demat Account/Client Master List
The client master list or client master list is the most important document in unlisted share trading. It contains depository participant identity, client ID, PAN number, bank/DEMAT account, and other details.
Crossed/Cancelled Bank Cheque
Once the deal is closed, you will also need to submit a copy of the canceled cheque.
Understand Your Depository
Just like understanding a company before investing in shares, it is equally important to know your depository. Depositories help you store all your financial assets like stocks, bonds, mutual funds, and others in DEMAT form. Here is a step-by-step procedure to know your depository.
- Check your Demat account-related documents, such as Demat statements and DP slips.
- Connect with your broker with whom you have your Demat account.
- If your Demat number starts with IN, then it is registered with the NSDL depository, and if 8 out of the first 16 digits are numeric, your Demat account is registered with CDSL.
Now that you know everything about the process of transferring shares offline, you should reward yourself with a nice investment. What about investing in unlisted shares? Or, what about investing in Pre IPOs? Sounds Fascinating? Connect with our experts to learn more!