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.


#5

Hey Rupesh

Have you got transfer sbi share to demat form.
Same is my case .can you please help me also in this regard.
My father was sbi employee and that time he bought sbi share. I still have sno share …I want to convert it into demat form.
Pankaj :8125616085 request you to please call if you have already gone through process.


#6

@rahul_kumar3 @rupeshmandal : As explained the process is EITHER (1) get the physical share transfer from your father to your name and than get the same demated on your existing demat account. this is suitable if your father do not have demat account and does not hold any other share so opening a demat account just for 1 scrip may not be a good idea. this process will incur 0.25 stamp duty plus postal charges . (2) directly open a demat account on your fathers name exactly as per name on share certificate.


#7

My father also worked in sbi and died 15 yrs back, My fathe’rs share certificats were miissedd some where place, even not found any zerox copies and also original, pls tell me the process, how could i get back that share to my mother demat account.


#8

@jayasimha : frankly speaking when the lost shares are on single name of a person who passed away ,it is very difficult ,time consuming ,expensive and tedious to obtain duplicate certificate from company. do you get dividend and annual report ? if yes than you can know the folio no and on this basis you write a registered letter to company /registrar asking the formalities of a duplicate share certificate.


#9
  1. Download the share transfer form.

  2. Fill the form, your father’s signature, and your signature.

  3. Attach share transfer stamp 0.25% of current value of the stocks. Better to put stamp of little more amount to be on safer side. You may find the stamps at the court.

  4. Look for Datamatics office in your city. They are the RTA (Registrar and Transfer) for SBI. Address for Mumbai as under:-


    If you go to Datamatics office, you would get the share transfer stamps there itself. If there is no Datamatics office in your city, you can send the form and original share certificates to Mumbai office after speaking to them. Take a xerox of the form, share certificates and speed post number for your records.

  5. Within a month of submission of the form and certificates, you would get the share certificates back transferred in your name.

  6. Now you can contact your DP for converting them to Demat. I just went to nearest HDFC Demat Desk and submitted the share certificates. They filled a form and within 2 weeks, the shares were in my Demat account. For Zerodha I guess you have to courier them along with a form. You can contact their support for the same.


#10

Thanks Bro