Transfer of securities from an account in one depository to an account in another depository is termed as an inter-depository transfer. This facility is quite similar to the account transfers within NSDL.
- It can be done only for securities that are available for dematerialisation on both the depositories.
- The account in NSDL can be either a clearing account or a beneficiary account.
- For debiting the clearing account or the beneficial account with NSDL, the form for "Inter-depository delivery instruction" is required to be submitted by the clearing member/beneficial owner to its DP.
- For crediting the clearing account or the beneficial account, the standing instruction given for automatically crediting the account is applicable. In case the standing instructions are not given, then the form for "Inter-Depository Receipt Instruction" is required to be submitted by the clearing member/beneficial owner to its DP.
- As both the depositories are connected to each another, the batches to effect inter - depository transfers are presently exchanged on each working day.
- Online transfer of inter depository instructions has commenced w.e.f December 14, 2002. In the online inter depository transfer (OLIDT) module, Inter Depository Transfer instructions for the day will be exchanged online between the two depositories. Thus, the instructions executed by DPs may get settled at shorter intervals.
- The deadline time for DPs to verify & release Inter Depository Transfer delivery/ receipt instructions is 6 p.m. on weekdays and 2.30 p.m. on Saturdays.
- The Issuer/Registrar & Transfer Agent is informed about the transfer by both the depositories and it amends its records accordingly.
- Government securities cannot be transferred from one depository to another using this facility.