InvestorQ : How does demat facilitate simple transfer of shares
Moii Chavate made post

How does demat facilitate simple transfer of shares

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Tisha Malhotra answered.
3 years ago
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Transfer of shares is a lot easier. Demat transfer is a literal breeze. You issue a debit instruction slip and the shares are debited to your demat account. When you buy shares, the shares are automatically credited to your demat account. The entire process of transfer and ownership happens in less than 2 days. Let us also understand the process in slightly greater detail.
When you receive shares into your demat account you are actually required to give a transfer-in form (TIF) each time. However, being a cumbersome process, the DP will include a clause wherein you can authorize the DP to receive all transfer in without a separate form each time.
Again, this is optional and you can opt to give a physical TIF each time. Debiting to your demat account is a lot more complicated and you need to give a DIS signed and in the proper format. However, you can chose to just sign a Power of Attorney with your broker to automatically debit your account as part of your routine trades. This is more so in case of online trades when you have anyways authorized the debit to your demat account online and this is only a reaffirmation.
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