How Can Physical Shares In The Name Of My Father Be Transfered To My Name In My Demat Account?
A web user asks, My father has some shares of essar oil and idbi bank in physical form.(share certificates). He is not into investing in stock markets and never created a demat account. He now wants to transfer these shares to me. How do we do the transfer of the physical shares to my demat account?
what are the tax implications of this transfer of shares?
Can you help them out? Post your advice!
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Posted in Trading
You have to send these shares to respective transfer agent of the companies with transfer forms duly filled and signed by your father in your favour. Once it is done you will get the shares transferred in your demat account. You can get the names of transfer agent from cos. websites as most of the cos. have this information mentioned in them.
1. Buy Transfer Deeds according to number of scrips. In Delhi, they are available near DSE building at Asaf Ali Road. Signatures of both Transferor and Transferee are required on that Transfer Deed.
2. You need to pay Transfer charges while filling out a Transfer Deed, which is currently at Rs.2.5 per Rs.100 of shares. The value of shares (technically called as Consideration), can be calculated on any particular date as decided by you. So, if you decide to select 21/22 January as that date, it would be cheaper as share prices fell on that day. Consideration date cannot more than 15 days old.
Share Transfer Stamps is the manner in which one can pay transfer charges on shares. In Delhi, such stamps are available in Gol Daak-Khana.
3. Send those completely filled in Transfer Deeds to the Registrar of the respective company.
4. It might take atleast 1 month or maybe more for shares to be transferred in your name and further 15 days in dematting them in your account.
Alternatively, open a Demat account in your father’s name and get the shares dematted and later on transfer them into your own account. It would be easier, quicker and cheaper option to go for in my view. Your father can always close his Demat account at any point of time. Isn’t it?
Good Luck!
You can get the “Share Transfer Form” from your broker or any other share broking company. You need to fill that form and fix the postal stamp (RM of that brokerage house can tell you about the cost of stamp,it depends on the present rate of share). Then you have to send that Transfer form and share certificate to respective share house like karvy etc. When it will be transferred in your name ,you will have to fill De-materialisation request form(DRF). Then you will get the shares in your demat account.
*you have to fill separate transfer form for different shares i.e, essar and idbi.
*Tax implications will be same like other shares in your demat.
I would recommend you visit a nearest State Bank of India and check with the manager who can help you with a Trading account and these requirements.
see thishttp://www.demataccount.com/demat-shares…