I have purchased some units of a G-SEC listed in NSE. My DEMAT account is with NSDL. But the units were not credited to my DEMAT account. The reason stated by the DP is that the bought units of G-SEC are in CDSL and cannot be credited into a NSDL DEMAT account. DP has asked to give a CDSL DEMAT account with the same name
Please suggest whether I need to open another DEMAT account with CDSL to get this done?
Thanks,
Vinodh
The Government while issuing securities in Demat format would have designated a set number of units to each of the depositories (NSDL & CDSL). In such cases, inter depository transfers wouldn’t be allowed.
So if you have a NSDL account and the DP has received units in CDSL, they wouldn’t be able to transfer it to your NSDL account. The only option you’re left with is to open a CDSL account to get the transfer.
DP’s have written to the Government to allow Inter DP transactions on Govt. Securities. We’ll have to wait and see if it materializes. The same is the case with the Sovereign Gold Bonds as well.
Did you manage to find a solution ? Share with us, how you sorted out this situation ?
Hi Venu,
Thanks for the reply. The issue was sorted out by selling the the SGB by the brokerage itself and crediting the amount to my bank. This was the alternative available other than opening a new demat account.
However I would like to know whether it could have been transferred to a CDSL Demat account held with a different brokerage by the existing brokerage. Both the Demat accounts have the same BO.
With thanks & regards,
Vinodh
It’s possible to transfer the SGB from an NSDL Demat account to a CDSL Demat account. However, this is an offline process for which you’ll have to submit a Remat request to DP with NSDL and a Demat request to DP with CDSL at the same time.
You’ll have to approach NSDL-DP and ask them for the Remat request form, fill it up and submit it to them.
You needn’t have to wait for them to issue you the certificates and then approach your CDSL-DP and get it Dematerialised. If you’ve opened a NSDL account at ILFS through Zerodha, you may forward the copy of the remat form to us and we’ll facilitate the transfer.
When you submit them the Remat request you’ll also have to initiate the Dematerialisation request with the CDSL-DP
To remat you will have to provide a rematerialization form along with an ID proof and address proof to your NSDL-DP. The remat form will have to be filled with details of the number of units of SGB and the relevant series that you wish to remat.
After you’ve submitted the remat form to your NSDL DP, simultaneously, you’re also required to send the Demat request form to the CDSL DP along with a letter for Value Free Transfer Letter (Format attached) and the Statement of Holding of the Account from NSDL DP duly stamped and signed by the authorized signatory of the DP indicating that you are holding the SGB units in your NSDL Demat account.
On receipt of the above-mentioned documents from the customer, the DP will then have to set up the Dematerialisation request and forward the physical documents to CDSL for further action.! CDSL would then co-ordinate with NSDL and facilitate the transfer from NSDL to CDSL of the SGB units.
What does simultaneously imply? Within X days? Does the remat expire if you don’t send the demat request to the CDSL DP within some prescribed time?
Once the Demat/Remat request is raised by the DP, within 21 days it has to be accepted by the depository. So, with this calculation, it’s always suggested to submit both Demat and Remat requests parallelly to avoid rejection.
