- Open a new demat and trading account
Once the new broker is finalized, the account can be opened by using the broker portal and filling out an online form with the basic details. Then the KYC documents must be uploaded for verification and a video verification of the applicant is performed. Once the OTP verification is completed, the account is opened.
- Transfer of assets with the same custodian
Whether new and old brokers are registered under the same custodian, ie. or NSDL respectively, the transfer can be made online by the investor himself. This can be done by registering on the easiest CDSL platform for CDSL accounts.
- Transfer of holdings with different custodians
In case the existing DP is registered with NSDL and the new DP is registered with CDSL, the investor must complete a debit instruction slip (DIS) to the existing DP to transfer the securities as indicated in the form. This transfer can take up to two days. Once the holdings are transferred, the investor can withdraw the money from the trading account and place a closing instruction. All demat account holders must sign the closing form. It takes about a week to close the old account.
Point to note
- It is important to understand the brokerage plans and other fees charged by the new broker before deciding to switch.
(The content on this page is courtesy of the Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava, and Labdhi Mehta.)