Charges for transfer of shares from one DP to another DP

Discussion in 'Investors Grievances' started by v.avinash20, Nov 19, 2011.

  1. v.avinash20

    v.avinash20 New Member

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    Hi Gurus,

    I am closing my account with Sharekhan and moving to SMC online.
    I have opened DP account with SMC in same name and PAN.
    I have 11 script with Sharekhan which I would like to transfer to SMC.

    Sharekhan states :
    You need to fill up the "Off Market" trade portion of your Delivery Instruction Slip to transfer the share to another DP.
    The charges for off-market transfer of shares will be levied as under.
    "Minimum Rs.30/-per ISIN OR 0.03% of value of transaction (whichever is higher)"
    This amount will be charged in your monthly DP Bill.

    SMC Online states:
    I will be charged Rs. 12 per ISIN for the transfer

    But I went to your forum and found that there should not be any charges for transfer of shares if we close the account.
    This was in 2005-2006

    http://articles.economictimes.india...owner-depositories-or-depository-participants
    http://www.sebi.gov.in/faq/faqdemat.html (Point 15)

    IS THIS STILL APPLICABLE ?
    Should the Depository charge for transfer of shares from one DP to another if we close the account ?

    Any answer to my query is highly appreciated.
     
    NTrader42 likes this.
  2. abdriver2000

    abdriver2000 Member

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    I have transferred shares from one account in HDFC to another and no charges were levied. Not sure, if this was due to both accounts being HDFC.
     
  3. prabuanand

    prabuanand Member

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    There should be no charges for share transfer if you're closing your Demat account as per http://www.sebi.gov.in/faq/faqdemat.html (Point 15).

    Eventhough i have not yet done this myself, the right procedure is as follows. Don't give DIS to your current broker for off-market transfer. Instead ask for account closure form. If they don't have a form, then write a plain paper request based on this format 0173069www.icicibank.com/Personal-Banking/demat/PDF/Dematclosure.pdf

    Transfer charges will be waived if account/s of transferee DP and transferor DP are the same, i.e., identical in all respects . To avail of the waiver, a Client Master List (CML) for the target account/s needs to be submitted along with the Closure Form.
     
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