Can one transfer units from a demat account to another person’s demat account in another bank? Is this free of cost? What is the procedure? Mohan Sehgal, Delhi
Demat units can be transferred from one person’s demat account to another person’s demat account within the same depository participant (DP). This is called an off-market instruction, as it is date specific and not settlement specific. Such transactions are generally not free of cost as most DPs charge the initiator, and not to the recipient. To initiate a transfer you need to sign a demat instruction slip (similar to a cheque leaf), which the DP will give you, and submit it back to the DP with complete details such as the date of transfer, scrip name, quantity, international security identification number (ISIN), recipient’s DP name and ID.
