Do you might have demat accounts with a number of brokers? Not solely are you paying larger annual upkeep fees (AMCs), however these fees add up for each such account. However there’s a technique to decrease this payout: open a fundamental providers demat account (BDSA).
The annual upkeep fees of BDSA, launched by market regulator Securities and Trade Board of India (Sebi), is nil if the worth of holding is as much as ₹4 lakh. Whether it is greater than ₹4 lakh, however lower than ₹10 lakh, the annual fees are capped at ₹100. For greater than ₹10 lakh, the brokers can levy common AMC. When you’ve got a delisted share, its worth is pegged at zero.
Nevertheless, to be eligible for BDSA, you need to have just one demat account, the place you’re the sole or first holder.
The closure-cum-transfer facility provided by brokers means that you can consolidate your demat accounts. This facility is barely allowed in circumstances of self-transfers. You first must submit account closure varieties to your respective brokers.
Point out the small print of the goal demat account; choose the explanation for closure as ‘consolidation of accounts’; and verify the field that claims balances within the account are to be ‘transferred to a different account’.
You additionally should submit a replica of the consumer grasp report (CMR) of the goal demat account. The CMR copy is a digitally signed certificates issued by the brokers, which you’ll obtain by making a easy request on-line.
Listed here are few different issues to bear in mind. If the shares are transferred between joint accounts, the sequence of the first and secondary account holders in all accounts (supply and goal) should be the identical. For instance, if Mr. A is the first holder and Mr. B is the secondary holder of the present demat account. To switch shares to their new joint demat account, Mr. A should be the first and Mr. B the secondary holder of the brand new account.
Securities may be transferred solely throughout the identical beneficiary proprietor (BO) status–they may be transferred solely from a person account to a person account and never from a person account to a joint account, NRI or HUF account.
