Transfer of REC bonds - interdepository

Please suggest means to transfer REC bonds (locked for 5 years) from NSDL TO CDSL - Zerodha.

Is is possible or not.

Could you please advise the reason for moving the bonds from NSDL to CDSL? If the intention is to pledge the bonds and take a loan, then you can do it, but you will lose exemption under 54EC. Income from Long Term Capital Gains will be taxed in the year in which you have borrowed such loans.

Again not sure, if Zerodha will pledge these bonds, I was talking about loans from banks or other financial institution.

It is not for pledging but since i want to close my demat account with NSDL and transfer it to Zerodha through inter-depository transfer. As of now I come to understand that Bonds cannot be transferred with lock in period.
I am aware that I will lose exemption under 54 EC which is not my intention.

If you are putting in closure-cum-transfer request, you can transfer the lock in bonds to new DP. The request needs to be placed with existing DP.
Issue is discussed multiple time in forum, search it.


The bonds (lock-in) can be transferred from another broker’s demat account to your Zerodha account (only if the depository is the same, such as CDSL to CDSL or NSDL to NSDL).

It’s fine.

MY DP said it is not possible.

Generally, most DP resist as no one wants to close an account. It will need some convincing and escalation on your part.
Go through this thread, it is abut lock in yes bank shares, but should provide some insight

And a really old circular from NSDL on subject

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I am sorry to say that email sent to speed e& nsdl regarding this matter has had no response. That’s it. Even telephone calls not attended. I do understand that it can be done offline through DIS along with annexureA for off market transfer as stated by RTA to REC Bonds. When contacted DP they said it is cumbersome . Red-tapism is the bane of institutions.