DP refusal to authenticate CDSL Easiest Trusted Accounts

Hello,

I hold multiple demat accounts with multiple DPs (stock brokers). As soon as I open an account, I link all accounts using “Trusted Accounts” facility provided by CDSL Easiest. Most DPs will authorize “trusted accounts” in a couple of working days without even requesting separately.

Recently, I asked one of the DPs to authorize “Trusted Accounts” manually via their support after more than 3 months since CDSL Easiest registration. They refused to authorize and asked me to utilize DIS whenever I need to transfer the holdings.

As an investor, do we have any rights to force the DP to authorize “Trusted Accounts” in CDSL Easiest?

Or does DP have the right to choose whatever method to let their demat accounts holders to transfer holdings?

Any SEBI / CDSL guidelines on the same?

I checked the FAQ on CDSL Easiest at…

I also checked some other FAQs in CDSL at…

It isn’t clear about the investor’s rights. Or I couldn’t understand it correctly.

PS: I no longer hold any scrips with this particular DP. I sold all in open market (resulting in some STCG tax) and will buy via another DP soon. I will post a review of this DP in a separate thread in the future.

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Since Jan 1, 2024, CDSL added extra measures to avoid incorrect transfers. I don’t know if we still need to use “Truested Accounts” in addition to the recent changes.

Hi @pothi

I’ve checked this with the team and got the following response.

If the DP is not approving your request, you can write to the depository, and they will get it done.

If a client is adding a particular a/c as a Trusted account, he/she has to still go and add this a/c into “Add beneficiary”, which is a time request.

This we have explained in our support article.

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Thanks for the clarification. Appreciate your time to check with the team.

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My Trusted Account for Easiest is pending signature validation by Zerodha. Can you please help me out ?

If you are adding the transferee’s BO ID as a trusted account to an individual holder demat account, you need not courier/ share the documents to get it approved. The same will be approved from our end within 24 to 48 working hours.

If in case you are trying to add the transferee’s BO ID to the non-individual/ joint holder demat account you need to download the prefilled addition of trusted account form from the CDSL easiest portal (Miscellaneous tab > add/ edit trusted account) affix the signature of the transferors and transferee and courier the form to Zerodha HO, Bangalore.

For more information on the same, you can refer to the article How to add a trusted account on CDSL Easiest?

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Hi Guys,

I’m in a similar situation and I’d want to close my old brokerage account .

Id like to ask the following questions : I appreciate your answers / feedback .

  1. Should I transfer shares or should I sell them? I don’t mind selling if the transfer of shares is a really hectic process.

  2. Will the tax computation be correct on the transferred shares when I sell the transferred shares from the new brokerage account?

  3. What are the charges? Does it cost per share or does it cost once for an entire transaction?

Thanks

Should I transfer shares or should I sell them? I don’t mind selling if the transfer of shares is a really hectic process.
Please be aware that as a Depository Participant (DP), Zerodha cannot advise you to choose one process over another. It is entirely your decision whether to sell the shares or transfer them to another demat account, depending on your requirements.

Will the tax computation be correct on the transferred shares when I sell the transferred shares from the new brokerage account?
Please refer to the article Are there any income tax implications on the gifting of shares? to know about the tax implications on transfer of shares.

What are the charges? Does it cost per share or does it cost once for an entire transaction?
Kindly note that for the successful transfer of shares via the off-market transfer process (CDSL easiest/ DIS and console gift), you will be charged 0.03% or Rs 25 whichever is higher per ISIN (scrip). + 18 % GST.

Example: If you are transferring 3 different scrips of value Rs100000 each then the charges would be,
Rs100000 * 0.03% = Rs 30 per ISIN + 18% GST will be charged = Rs35.4
Since you are transferring 3 scrips total charges would be Rs 106.2.

Click here to learn about the charges about selling the shares.

You can manually enter buy price and dates on Zerodha after transfering. So will be same tax computation.

Just don’t use zerodha gifting. Use CDSL transfer

I’m looking to transfer holdings from IIFL to Zerodha.

Found this FAQ on CDSL website. Q5:

  1. If I am registered for easi, can I register for easiest?
    Yes, you can by selecting the option ‘Upgrade BO ID to easiest’, in your easi account login. However you may have to check with your DP if they have subscribed for the easiest facility.

How to check if IIFL has subscribed for the easiest facility? I requested them to approve my easiest registration request around 4 months ago and they denied because they weren’t registered.

@Meher_Smaran can you share the email ID where this request can be placed with CDSL itself?

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You can write to [email protected]

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This DP must be Upstox, I had faced similar issue.

I have registered myself on easiest portal to transfer my shares from some other DP i.e broker to Zerodha’s kite.
I have done the BO linking step i.e my zerodha DP_ID mapped as the account which I want to transfer to and it is verified as well, but under trusted account it shows my zerodha’s BO ID / DP ID as pending for authentication . I have raised a ticket for this as well to zerodha , can anyone help me :question:
@Meher_Smaran

This authentication needs to be done by the DP from where you’re transferring securities. Nothing Zerodha needs to do here.

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I’ve got it authenticated by my current DP. Thanks for pointing me towards right direction.
Now I would like to perform the steps to transfer the shares , can you let me know after I perform the bulk-setup and commit , how much time would it take to get the shares transferred to zerodha’s kite ?

Also , after shares are updated in zerodha , do I need to manually update share buy price in kite ?
@VenuMadhav

Your existing DP will have to authorize the transfer. Once it’s authorized, the transfer between CDSL - CDSL is almost instant. Inter DP (NSDL - CDSL) gets done in 5-10 minutes. They’ll start appearing on Kite one day after the credit is reflecting in your Zerodha demat account.

You’ll need to do this on Console. Here’s the right article to help you.

@VenuMadhav , I got an email from CDSL today (15/05/2024 12:52pm) mentioning shares are debited from other DP and credited to demat account of zerodha. (I matched the demat account number as well)
But I don’t see it in my kite app / web console.
I’m guessing it’s following T+1 settlement and would be available tomorrow i.e 16/05/2024 ?

Can you please confirm. thanks in advance !

It should start showing in your Kite holdings from tomorrow.

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@VenuMadhav , maybe one last query.

My transferred equity shares are showing up in kite and I have updated buy-price and purchase date as well.
The details are updated in console/holdings but it still shows N/A in kite with the warning sign.

Also, I do have some demat mutual-funds as well which I would like to transfer.
My question is , if I transfer these demat mutual funds , will they show up in KITE or COIN or both of them ?

Mutual funds bought from Coin are in demat form and appear in Coin not in Kite. However Console shows all your demat account holding so stocks (bought from Kite or transferred to Zerodha) and mutual funds (bought on Coin or transferred to Zerodha) will appear in Console.

Zerodha doesn’t allow non-demat/folio/SOA mutual funds. Such funds needs to be dematerialised into your Zerodha demat account. Hope it helps.