Consolidating all demat accounts into a single account simplifies personal finances, decreases paperwork, and enhances the overall investment experience

How to consolidate demat accounts: Step-by-step guide

Many investors end up opening multiple demat accounts. However, managing several accounts can lead to complications like higher maintenance costs, difficulty in tracking investments, and excess paperwork. Consolidating demat accounts into one simplifies personal finances, reduces paperwork and improves the overall investment experience.

Evaluate accounts
The first step towards consolidating demat accounts is to review all accounts, noting the depository participant (DP), charges, and holdings. Identify inactive or unnecessary accounts and choose the one you wish to retain.

Transfer to chosen account

• The next step is to transfer shares from other accounts to the chosen account. The process of transferring securities between demat accounts involves an off-market transfer.
• If both accounts are under the same depository (either NSDL or CDSL), fill out the delivery instruction slip (DIS) of the transferring account and submit it to your DP.
• If the accounts are with different depositories, an inter-depository instruction (IDI) is required, which is similar to the DIS, but with additional details.
• Ensure that the transfers are done in batches to prevent errors. Also, confirm that the shares have been credited to the primary account before closing the other account.

Close unwanted accounts
After transferring, close the inactive or unnecessary demat accounts. To close a demat account, submit an account closure form to your DP. Ensure that all holdings have been transferred and there are no outstanding dues.

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Monitor account
Once all shares have been consolidated in the primary account, investors should monitor it regularly. With a single demat account, portfolio management becomes easier, costs reduce, and tracking invest

Content courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

This story originally appeared on: India Times - Author:Faqs of Insurances