How to Consolidate Multiple Demat Accounts? Here's a Step-by-Step Guide

Many investors end up holding more than one demat account—perhaps opened at different times or with various brokers. While having multiple accounts is legal, managing them can be cumbersome and lead to extra charges. Consolidation may simplify portfolio tracking and reduce maintenance costs, depending on the investor’s holdings and the DP’s policies. This guide walks you through why and how to consolidate your demat accounts through a standard process.

There are several reasons why an individual may end up with more than one demat account:

• Opened accounts with different brokers for varying services or platforms.
  

• Inactive accounts left behind due to migration to a new broker.
  

• Demat accounts created unknowingly during the onboarding process with certain banks or platforms. While not illegal, maintaining multiple demat accounts increases administrative effort and costs.

Bringing all your demat holdings into one account has several benefits:

• Easier portfolio tracking: All holdings are visible in one dashboard.
  

• Cost savings: Annual maintenance charges (AMCs) and other fees are reduced.
  

• Simplified compliance: Easier to manage KYC updates, tax filings, and nominee details.
  

• Reduced risk: Lesser chance of missing corporate actions like dividends or rights issues.

Follow these steps to merge your demat accounts and transfer holdings into a single preferred account:

Step 1: Choose the Primary Demat Account

Decide which demat account you want to retain. This becomes your primary account, where all your securities will be consolidated.

Step 2: Obtain the Delivery Instruction Slip (DIS)

From the demat account you wish to close, request a DIS booklet (if not already available). This acts like a cheque book for your demat transactions.

Step 3: Fill Out the DIS Form

Use the DIS to initiate the transfer of securities from the old demat account to your primary one. Provide the following:

• Target Client ID (your primary account number)
  

• ISINs of the securities being transferred
  

• Quantity of shares per ISIN
  Ensure you tick the option for off-market transfer.
  

Step 4: Submit the Form to Your DP

Submit the filled DIS form to your Depository Participant (DP)—the broker or institution managing your old demat account. Retain the acknowledgment receipt for tracking.

Step 5: Verify the Transfer

Once processed (usually within 2–3 business days), log in to your primary demat account and verify that the securities have been transferred.

Step 6: Close the Old Account

After confirming successful transfer of all securities and checking for pending dividends or benefits, request the closure of your redundant demat account. Submit:

• A filled closure form (available with your DP)
  

• KYC documents like PAN, Aadhaar
  

• The unused DIS booklet (if applicable)

Before initiating consolidation, keep in mind:

• Off-market transfers may attract charges, typically levied per ISIN or transaction.
  

• NSDL and CDSL accounts follow slightly different formats, but the process remains largely the same.
  

• Only the account holder can initiate transfer—joint account holdings cannot be merged with single accounts.
  

• Always cross-check ISIN codes and quantities before submitting the DIS.

Completing this checklist ensures a hassle-free consolidation experience.

Consolidating multiple demat accounts may help streamline investment management and reduce maintenance charges. By carefully following the step-by-step process and ensuring all documents are submitted accurately, investors can merge their accounts without disrupting their investment journey.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.