Here’s how to use the services available with depositories—Central Depository Services Ltd (CDSL) and National Securities Depository Ltd (NSDL)—to transfer securities to another demat account without approaching your broker. In the second option, called account of choice, the client can transfer stocks to any demat account. Once you freeze your demat account or a stock, the broker cannot transfer securities out of it. In most recent scandals, brokers found loopholes in regulations and debited clients’ account to transfer securities to the demat accounts of their own. You can add demat account belonging to them as trusted account," said Naveen Wadhwa, deputy general manager, Taxmann.com, a platform that provides tax research-related services.

Source: Mint September 20, 2020 16:41 UTC