A lot of our clients who are also clients of Karvy Broking, have reached out to us wanting to know the procedure to transfer their securities from their Karvy demat account to their Zerodha demat. This is in the wake of CDSL having sent out the below email to investors:
Note: If you aren’t able to transfer out your securities by the 11th of December, do not worry. Please read on.
We’ve gotten a lot of queries, so creating this thread. You may post any questions you may have on this thread and we’ll do our best to answer them. Noting down a few things that we’re already aware of:
CDSL has asked all investors to reach out to Karvy and effect a closure cum transfer. This is in the aftermath of the incident at Karvy and CDSL having terminated them as a depository participant.
Investors can reach out to Karvy until the 11th of December 2020, to carry out a closure cum transfer. To do so, you will have to submit a closure-cum-transfer to Karvy
To ascertain your actual holdings in your demat account, please register for easi. easi is a portal developed by CDSL for investors to check their holdings. The procedure to register for easi is available here: How do I register to CDSL easi? It is said that holdings that weren’t existing were being shown to investors as available holdings on the broker’s backoffice. By logging into easi, you can actually verify if the holdings exist or not.
If you don’t find holdings that you expect to find in your demat account, you may need to take it up with the Exchanges. Please be sure to keep all copies of your contract notes and other such documents as proofs for submission.
If the holdings are available, you will have to submit a closure-cum-transfer** form to Karvy along with a copy of your digitally signed client master report. If you are trying to transfer shares to your Zerodha demat account, you can request for the digitally signed CMR by logging into Console on the following path
Click on the profile icon on the top right corner -->Documents -->Select Document type as CMR → Click Submit
Your digitally signed CMR will be emailed to you.
If you’ve already sent digitally signed copies and if Karvy is insisting on a physically signed CMR, please forward them a copy of this regulation from CDSL: https://ww1.cdslindia.com/downloads/Operating%20Instruction/DP%20%20Operating%20Instructions%20Chapters%20as%20on%20%20Sep%2030,%202020.pdf
(Refer page 5 of 15 of Chapter 10)
CDSL operating instructions allow a DP to initiate a transfer by accepting a digitally signed CMR copy.
If you aren’t getting the required support from Karvy and are unable to transfer shares before the 11th of December, do not worry. Karvy must be inundated with transfer requests and they may not be in a position to process them all. After the 11th of December, your account will be transferred to CDSL. CDSL will issue a suitable notification on how to effect the transfer post 11th of December to an account of your choice.
You will not be able to transfer out securities using any of the electronic methods including easiest.
Lastly, if you don’t have an account at Zerodha, and would like to open one and then transfer your Karvy holdings, you may visit this link: https://zerodha.com/open-account. The process of opening an account at Zerodha is completely online, simple, convenient and quick.
** Closure cum transfer can only be done between the same account holders. If you’re holding a joint account, the order in which the names appear in the demat account have to be the same in both accounts