Zerodha has made a significant announcement for investors who have multiple demat accounts with different brokers. The company will now refund the DP charges levied on transferring shares from one broker to Zerodha. This will help investors consolidate their scattered portfolios and save additional costs. Zerodha co-founder Nithin Kamath says the purpose of this decision is to simplify tax calculations, portfolio tracking, and investment management for investors. Investors can now transfer shares online from the comfort of their homes using CDSL Easiest.
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New Delhi . Zerodha has announced a significant and beneficial decision for investors. The company has announced a refund of DP charges for transferring shares from another demat account to Zerodha. This decision will especially benefit those who have multiple demat accounts with different brokers and whose investments are scattered across multiple platforms.
According to Zerodha co-founder Nithin Kamath, investors often face difficulties in portfolio management, tax calculations, and investment tracking due to holding shares in different accounts. With the new rule, investors will be able to bring all their shares onto a single platform without worrying about additional expenses. This could also reduce the annual maintenance charge (AMC).
Now there will be no extra burden on share transfer
Until now, investors transferring shares from Groww, Angel One, Upstox, or any other broker to Zerodha had to pay DP charges. This was the reason many investors were reluctant to transfer shares. Zerodha has addressed this issue by announcing that it will refund these charges incurred during the transfer process. This could save investors thousands of rupees, especially those with large portfolios.
All investments will be visible in one place
Holding shares in different demat accounts makes it difficult for investors to get a clear picture of their total investment. Often, separate statements have to be compiled for tax filing. Having all shares in a single demat account will make portfolio tracking easier. Furthermore, the process of calculating capital gains and filing ITR will also be simplified.
This is how you can transfer shares online
If both your existing broker and Zerodha are on the CDSL platform, you can complete the entire process online through CDSL Easiest. First, you need to register on the CDSL Easiest portal. Next, add your Zerodha account as a trusted account. Then, go to the Transactions section, select the shares, and submit the transfer request. After OTP and PIN verification, the request is processed, and the shares typically appear in your new account within 1 to 2 business days.
Offline method also available
Investors who do not wish to use the online process can also transfer shares through a Delivery Instruction Slip (DIS). To do this, obtain a DIS book from your existing broker and enter your Zerodha demat account information and the details of the shares to be transferred. After signing, submit this slip to the relevant broker. The share transfer process is then completed.
Purchase price needs to be updated
Once the shares are transferred, Zerodha will no longer have data on your previous purchase price. Therefore, the shares may appear as N/A on Kite or Console. Investors will need to manually update their purchase price and purchase date to ensure accurate profit, loss, and tax calculations in the future.
Relief from AMC and tax hassles
Having multiple demat accounts requires investors to pay AMC fees at multiple locations. Furthermore, tax reporting and capital gains calculations become complicated. Zerodha’s new initiative is expected to provide relief to investors on both fronts. Keeping all investments on a single platform will reduce expenses and simplify investment management.
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