How to transfer Shares (Physical Format) from father to me (Zerodha Demat)


#1

My father has a few hundred shares of SBI which are in physical paper format which he had bought around 20 years back. Please guide me the easiest way to transfer them to my Zerodha account.

I called up Datamatics Financial Services, Mumbai which is the Registrar & Transfer Agent for SBI.

They told me to download and submit the SH4 Form and at first share name transfer has to be done in my name in the physical format. And then the paper shares in my name will be converted to my Demat account.

The process will incur Stamp Duty 0.25% of the market price of the shares.

Documents required:-
PAN of both buyer and seller
Original Share certificates

Just wanted to know if there is an alternate process for easy transfer?

What if I open a Demat a/c for my father on Zerodha and then convert the physical shares to his Demat a/c and then transfer from his Demat to my Demat? Will it be easier that way?

Also, what would be the taxation implications for share transfer in my name?

Please guide.
Thanks.


#2

Yeah, you’ve mentioned both the options:

  1. Change share certificate to your name and then dematerialize to your Demat. Steps as you’ve mentioned.

  2. Open Demat in dad’s name, dematerialize into his Demat and then have the shares transferred to your Demat using DIS. You can avoid the RTA process.

No tax implications as the shares are long-term holdings now.


#3

Will option #2 i.e. opening Zerodha A/c for my father, dematerialise the paper shares into his Demat and then transferring them into my Demat be an efficient method?
Can anyone help me with the charges please.


#4

If the intention is just to transfer shares to your Demat, then Step 1 is more efficient. The Demat tariff sheet is available in the account opening form > page 14.