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What is the process for an inter-depository SGB, G-sec and SDL transfer?

An inter-depository or value-free Sovereign Gold Bonds (SGB) transfer involves transferring dematerialised SGB’s from one depository to another (NSDL to CDSL or vice-versa).

SGB’s are maintained in demat form with the RBI permitted Constituent Subsidiary General Ledger (CSGL) account of Depository Participants (DP). Given that RBI has a separate ledger-based mechanism for recording ownership of SGB’s, they cannot be transferred like stocks. They can only be transferred through a value-free transfer . An investor has to submit a rematerialisation request for the debit of SGB’s to the transferor DP and submit a dematerialisation request for credit of SGB’s to the transferee DP.

The rematerialisation request to the transferor Depository Participant (DP) and demat request to the transferee DP has to be submitted simultaneously.

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

To rematerialise, the following documents must be submitted to the NSDL DP:

  • Rematerialisation form filled with details of the number of units of SGB’s and the relevant series. Contact the NSDL DP for the form and details of SGB.
  • Self-attested copy of ID proof and address proof.
  • Provide the CSGL account number and CSGL counterparty name mentioned below to the NSDL DP and instruct them to transfer the securities to the Constituents Subsidiary General Ledger (CSGL) of CDSL:
    *CSGL account number – SG020199.
    *CSGL Counterparty name - CDSL.

To dematerialise,  the following documents must be submitted to the CDSL DP (Zerodha demat account) :

  • 2 dematerialisation request forms ( PDF ) for each SGB series or ISIN. Sign on both the DP and Signature with RTA/Issuer/Co fields .

  • 1 Value Free Transfer Letter ( DOC ) for each SGB series or ISIN.
  • Physical statement of holding from NSDL DP duly stamped and signed by the authorised signatory of the DP.
  • Self-attested ID proof.
  • NSDL DP CMR with seal and signature of the DP official.

All forms have to be sent to the Zerodha Head office:

Zerodha,
153/154, 4th Cross, J.P Nagar 4th Phase,
Opp. Clarence Public School,
Bengaluru - 560078

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

To rematerialise, the following documents must be submitted to the CDSL DP:

  • Rematerialisation request form ( PDF ) for each SGB series or ISIN.
  • The rematerialisation form has to be filled with details of the number of units of SGB and the relevant series or ISIN¹.
  • Self-attested PAN.
  • Value-free transfer letter ( DOC ) for each SGB series and ISIN.
  • NSDL demat account CMR with DP seal and signature.

To dematerialise, provide the following documents to NSDL DP:

  • Dematerialisation request form. Contact the NSDL DP for the form.
  • Value-free transfer letter ( DOC ) for each SGB series and ISIN.
  • Statement of holding (SOH) of the account from CDSL DP (Zerodha) duly stamped and signed by the authorised signatory of the DP. To get a copy of the SOH, create a ticket .

The inter-depository transfer process takes up to 2-3 weeks.

Notes

¹ To view the number of units or the ISIN of the SGB:

  1. Visit console.zerodha.com/portfolio/holdings
  2. Click on the context menu.
  3. Click on View breakdown .