InvestorQ : I have 7 demat accounts. Can I consolidate all of them into 2 accounts?
Lavanya Subramanian made post

I have 7 demat accounts. Can I consolidate all of them into 2 accounts?

Answer
user profile image
Niraj Mehta answered.
2 years ago


If you have multiple demat accounts across different depositories, or across different DPs or even across the same DP, then you must seriously look at consolidating these demat accounts. Ideally, it is best to have 2 demat accounts; one for your trading activity and one for your investment portfolio. It does not make sense having more dematted accounts. Of course, there are cases where people separate the demat accounts for their own use and the demat account for bequeathing to children. This is more for convenience sake. The remaining demat accounts can be consolidated with one of these 2. You can consolidate through off-market transactions using your Debit Instruction Slip (DIS). That way your shares can be consolidated under 1 or 2 demat accounts and these off-market transactions to the same PAN mapped demat account does not attract any stamp duty or capital gains tax liability. To consolidate your multiple demat accounts you can use the DIS booklet illustrated below and use Off-market trades column to execute these transfer into 1 or 2 consolidated demat accounts.
You can use the DIS slip of each demat account to consolidate your shares into 1 or 2 demat accounts. Remember two things. Firstly, write the DP id and Client id properly and ensure that the names are perfectly matching with the DP account master details. Also, write the ISIN numbers manually and double check them. In case you are only transferring 2 shares, then cancel out the remaining space in the DIS form for safety.
So coming back to our core issue, yes you can consolidate and you should consolidate your demat holdings. The process is quite simple and you can make the best of it. Simplicity is the key to a good demat experience.