Today's challenge (Depository participant) issue

Can anyone please tell a DP who allows four account holders.? Most of the DP 's allows maximum of three. But I need four account holder to demat the shares bought in late 1990’s

demat allows only 3 holders , it is wise to transfer to one first holder and second holders and put nominee for rest , i have been through such problem last year, its a pain

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@mdk sir i am also facing the same problem. On the physical certificate there are four holders
Can you please tell me in detail. How to transfer the power to the first holder? What is the procedure, this would be a very great help. If you share your procedural experience in detail.

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send mail to company directly they will guide you step by step , requires signature and kyc of all holders and one noc form …

@mdk. Thank you.

Here’s an extract from CDSL’s operating instructions for September 2019:

So if the shares are held in the name of:
a. Rohit Sharma - First Holder
b. Shikhar Dhawan
c. Lokesh Rahul
d. Shreyas Iyer
e. Mahendra Singh Dhoni

You will have to open an account in the name of:
a. Rohit Sharma - First Holder
b. Shikhar Dhawan Lokesh Rahul
c. Shreyas Iyet Mahendra Singh Dhoni

You will have to ensure the order remains the same. Also, the account will be a temporary account opened just for the specific case of dematerialization. The shares will have to be subsequenty transferred to an account with three holders.

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I have a similar question about transferring the shares.

Example:
My existing demat account (with ShareKhan) has 2 holders: Rohit Sharma and Shikhar Dhawan.
I opened new demat account (with Zerodha) with only 1 holder: Rohit Sharma.

Now, I want to close the demat account with ShareKhan and transfer its shares to Zerodha using closure cum transfer form. Will it be considered valid or the Zerodha account should also contain Shikhar Dhawan’s name?

Or, is it possible to remove Shikhar Dhawan’s name from ShareKhan and then initiate the transfer process?

For a closure cum transfer, the account holders in the ‘transfer-or’ demat and ‘transfer-re’ demat have to be the same.

Once an account is opened with a set of account holders, you can’t add or remove holders.

The only way to transfer would be to open a Joint account with the broker where you intend to transfer your shares.

As said in example, I have already opened the new demat account with only one holder and my existing account has two holders.
Note that names of first holder in both accounts are same.

Is there still any way to transfer shares?

An off market transfer can be done, you’ll have to pay the specified charges for the transfer. You will have to get in touch with the DP where you are holding the shares to know the applicable charges.

Hi @VM1,

I have few queries based on the topic. Can you please help me to clear it out ?

  1. Being a first holder of the account does that mean that the first holder has all the rights in making the transfer of shares related ? ( when i tried to clarify myself with comparing a joint bank account and how it works, i got confused)

  2. What if one of the joint holder is deceased ? How ll the share allocation/settlement works ?

  3. If one of the joint holder is deceased, who will have the first preference in getting those shares ? Do they consider survivor/nominee first ?

sorry if in advance if i missed the answers from the support portal :slight_smile:

All the joint holders will have equal rights in making the transfer, the first holder will not be able to transfer without the other holder’s consent

We have explained in detail regarding the same on the Support portal

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