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What is the process for an inter-depository SGB transfer?

An inter-depository SGB transfer entails moving dematerialized SGBs from one depository to another (NSDL to CDSL or vice-versa). Your demat account with Zerodha is maintained with CDSL. The process to transfer SGBs from an NSDL DP to a CDSL DP (Zerodha demat account) is explained below:

This is an offline process called "Value-free Transfer" for which you will have to submit a Remat request to the DP with NSDL and a Demat request to the DP with CDSL at the same time. To rematerialize, 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.

When you submit them the Remat request you should simultaneously initiate the dematerialization request with the CDSL-DP along with a letter for Value Free Transfer Letter (format attached below) 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 dematerialization 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. Below are the documents required for the dematerialization procedure:

  1. 2 Demat request forms for each SGB series/ISIN (Please sign in both the DP and Signature with RTA/Issuer/Co fields) 
  2. Value Free Transfer Letter for each SGB series/ISIN
  3. Holding Statement of the holder from NSDL DP duly stamped and signed by the authorized signatory of the DP
  4. Self-attested ID proof
  5. NSDL DP CMR with seal and signature of the DP official

The process to transfer SGBs from a CDSL DP (Zerodha demat account) to an NSDL DP is explained below:

You will have to submit a demat request to the NSDL DP and a remat request to the CDSL DP at the same time. To remat you will have to provide a rematerialization form along with an ID proof and address proof to your CDSL DP  (Zerodha). 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.  

Once you have submitted the remat form to your CDSL DP, simultaneously, you’re also required to send the demat request form to the NSDL DP along with a letter for Value Free Transfer (format attached below) and the Statement of Holding of the Account from CDSL DP (Zerodha) duly stamped and signed by the authorized signatory of the DP indicating that you are holding the SGB units in your CDSL Demat account.

On receipt of the above-mentioned documents from the customer, the NSDL DP will raise the dematerialization request and forward the physical documents to NSDL for further action. CDSL would then co-ordinate with NSDL and facilitate the transfer from CDSL to NSDL of the SGB units.

Check the documents required for the rematerialization of SGB below:

  1. Rematerialization request form for each SGB series/ISIN
  2. Self-attested PAN
  3. Value-free transfer letter for each SGB series/ISIN
  4. NSDL Demat account CMR with DP seal and signature.