newbie help with share transfer

#1
Hello,

I'm looking to clean up some finances. I have a few old stock certificates, from when I purchased them 15+ years back. I am planning to demat them and consolidate in an electronic account. But before that I wanted some info on share transfers.

Some of these certificates are in my name, some in my wife's name, and some joint. I was wondering what the method is to transfer them all into joint name before demating the shares? Can someone please point me to instructions on how to do this, or tell me if it is not possible.

Thanks.
 
#2
stanguy said:
Hello,

I'm looking to clean up some finances. I have a few old stock certificates, from when I purchased them 15+ years back. I am planning to demat them and consolidate in an electronic account. But before that I wanted some info on share transfers.

Some of these certificates are in my name, some in my wife's name, and some joint. I was wondering what the method is to transfer them all into joint name before demating the shares? Can someone please point me to instructions on how to do this, or tell me if it is not possible.

Thanks.
Hello stanguy,

You will have to fill up share transfer forms where the old hierarchy of persons will be the sellers and the new ones the buyers. Pay the stamp duty on the same by affixing share transfer stamps behind the form. The stamp duty comes to about 1/2 % of the current market value of the shares. Send the duly filled up forms to the respective company/share transfer agents along with the original share certificate. This procedure will take 1-2 months. Once you have received them back give them for dematerialisation. If you are so transferring all the shares to one hierarchy, you will need to open only one demat account, else that many demat accounts as there are hierarchies of holders.

Hope this helps.

Regards,
Karuna
 
#3
Karuna said:
Hello stanguy,

You will have to fill up share transfer forms where the old hierarchy of persons will be the sellers and the new ones the buyers. Pay the stamp duty on the same by affixing share transfer stamps behind the form. The stamp duty comes to about 1/2 % of the current market value of the shares. Send the duly filled up forms to the respective company/share transfer agents along with the original share certificate. This procedure will take 1-2 months. Once you have received them back give them for dematerialisation. If you are so transferring all the shares to one hierarchy, you will need to open only one demat account, else that many demat accounts as there are hierarchies of holders.

Hope this helps.

Regards,
Karuna
Karunaji,
Thanks for that info. Just a clarification, for the hierarchy - if some shares have the owners' names in order A,B and some in B,A - can they be transferred to the same demat account?

Also, as an alternative, if I do open 3 demat accounts -
1. one for A,
2. one for B, and
3. one joint with A&B,

is it possible to transfer shares from account 1 to 3, etc. If so, what are the (typical) costs associated with that?

Thank you very much for your help. I really appreciate it.
 
#4
stanguy said:
Karunaji,
Thanks for that info. Just a clarification, for the hierarchy - if some shares have the owners' names in order A,B and some in B,A - can they be transferred to the same demat account?

Also, as an alternative, if I do open 3 demat accounts -
1. one for A,
2. one for B, and
3. one joint with A&B,

is it possible to transfer shares from account 1 to 3, etc. If so, what are the (typical) costs associated with that?

Thank you very much for your help. I really appreciate it.
Hello,

If you have shares in any order, you will have to first transfer them physically to one hierarchy and open one demat account for the new hierarchy of names.

For the alternative, you may open 3 different accounts and go for off market transfer from one demat (I think so, not too sure about that). The transfer charges are different for each depository. You will have to check out the charges with them and while you are doing that, confirm about the off market transfer part. If it amounts to a market transfer, you may also check with them the charges for the same.

Glad to have been of some help.

Regards,
Karuna
 

murthymsr

Well-Known Member
#5
Hi stanguy,
I had the similar problem earlier some 3 years back.
IDBI had a scheme then, by which, if you open a Bank account with them, they will allow some (I remember upto 4) Demat accounts with them of various combinations of names of savings account holders. These accounts are free for about 3 months, during which time you may consolidate into one demat account by off market transfers.

Then you will be left with one savings account and one demat account, which you can operate with comfort. I am not sure if the scheme is there now also. Please check up with IDBI bank near you.

Happy Investing.
murthymsr
 
#6
I have opened new Demat Account, primarily to clear old shares which my late father had in its name. this is my situation. Late Father(A), Mother(B), Aunt(C).
Share : 1 - Joint Name of A & B
Share : 2 - Single Name of A
Share : 3 - Name of C (purchased by A on the name of C)

Neither A, B, C had/have a Demat Account.
Now myself (D) want to sell the shares. How do i do it. Which all forms to be filled in by whom. What documents to be submitted to whom for each Type 1, 2, 3

grateful to those who guide me
Dhiraj
 

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