The stock market has always been a preferred investment avenue for many. Considering the higher returns and market volatility, investors choose to invest in stocks for tax benefits and faster wealth maximization. Investors were issued physical certificates by companies in the past and the same has changed into de-materialized certificates where the securities are credited and debited from the trading account held by the investor in a bank.

It is important to note that the sale and purchase of shares can only be carried out through a demat account opened with a bank. If you have multiple accounts for some reason, you can close the inactive accounts and transfer the stocks to the one active account you hold. The benefit of closing inactive accounts it that you will save on the annual fees and charges that are payable to the bank.

How to consolidate multiple demat accounts

The entire procedure of consolidation of multiple accounts is quick and hassle-free. You can follow the below-mentioned steps in order to consolidate different accounts.

Transfer of securities

You can simply transfer your securities from one demat account to another by filling a delivery instruction slip. The slip requires information of the securities which are to be transferred. The slip should be marked as off-market transaction and the same should be submitted to the Depository Participant (DP). In case of a joint account, you will have to submit the slip with the sign of both the account holders. If the target account also has the same account holders, the transaction will be processed. You and your joint account holder will be retained as the owners but the DP ID and the account details will be modified. After the completion of the transfer, the account with zero securities can be closed.

Securities with a lock-in

Certain bonds and funds come with a lock-in period and such securities cannot be transferred to the demat account. However, it is possible to transfer the securities. In order to do the same will have to re-materialize the securities. This means, the securities will have to be converted into physical certificates which can be held by you or they can again be de-materialized into a different demat account.


There will be nominal charges for the transfer of securities from one account to another. The charges vary from bank to bank.

Tax implication

There is no tax implication on the transfer of shares from one account to another.

You can easily transfer your securities from one demat account to another and save on the annual fees. Additionally, holding a single account will allow you to keep a track of your investments with ease. It does not make sense to hold multiple accounts that have securities scattered in each one of them. A single account will make trading easier and will make sure that the investments are organized in one place only.

By Chakraborty

Dr Chakrabarty is the Chief Innovation Officer of IntuiComp TeraScience. Earlier she was Assistant Professor of Delhi University, a QS ranked university in India. Before that she has held research positions in IIT Mumbai, IIT Chennai and IISc Bangalore. She holds 2 patents and over 20 research publications in her name which are highly cited. Her area of research is in smart technologies, integrated devices and communications. She also has a penchant for blogging and is an editor of Business Fundas.