Investing in the stock market can be an exciting endeavor, especially when you make your first profitable trade.
However, many new investors get confused about the process after selling their shares, specifically how to do EDIS (Electronic Delivery Instruction Slip) in Mero Share.
Completing EDIS is a crucial step to finalizing your stock sale transactions legally.
This article explains what EDIS is, how Mero Share works, and the full process of completing EDIS in Mero Share after selling your shares.
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What is EDIS?
EDIS stands for Electronic Delivery Instruction Slip. It is a service provided by CDSC (Central Depository System and Clearing Ltd) that allows investors to sell their shares before submitting a POA (Power of Attorney).
Essentially, EDIS makes share transactions authentic and legal by providing digital verification.
It generates an electronic slip with your delivery instructions for the sold shares.
Only Demat accounts held by a single name can utilize the EDIS system. EDIS replaces the need for physical delivery instruction slips.
Mero Share is an online platform developed and managed by CDSC where you can access all your share-related transactions linked to your Demat account.
It allows you to:
- Check your Demat account holdings
- View released IPOs, FPOs, and other share offerings
- Apply for new share issues online
- Easily track the results of your shared applications
- Manage your portfolio
- Perform transactions like EDIS
You can access Mero Share via their website or mobile app. It’s the most convenient way to monitor your investments and conduct transactions like EDIS.
Follow this simple 7-step process to successfully complete EDIS in Mero Share after you sell your shares:
First, log in to your Mero Share accounts either through their website or mobile app. You’ll see your main dashboard upon logging in.
Step 2: Go to Purchase Source
On the dashboard, click on “My Purchase Source” which will open the Purchase Source and My Holdings sections.
Under Purchase Source, search and select the company shares you want to EDIS by inputting the share code.
This will display details of the shares you hold in that company.
Step 4: Update WACC Purpose
Select the share row and click Proceed. On the next screen, update the WACC (Withholding Tax Calculation Purpose) and click Update.
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Step 5: Go to My Holdings
Return to the dashboard and click on “My Holdings.” Select the same share you are EDISing and hit Proceed.
Step 6: Update CGT Purpose
Select the CGT (Capital Gains Tax) Purpose and click Update. This records your purpose for the share transfer.
Step 7: Initiate EDIS
Go back to the dashboard and navigate to “My EDIS.” Under Transfer Shares, pick the share details and click Proceed.
Check the quantity, agree to Terms, and confirm to complete EDIS!
And that’s it – you’ve now successfully completed EDIS in Mero Share for your sold shares.
Conclusion
Completing EDIS is a simple but mandatory process in Mero Share after selling your stock investments.
Following the steps carefully ensures a smooth transfer of sold shares from your Demat account.
Check your broker’s guidelines, meet EDIS deadlines, and reach out for support in case you encounter any problems in Mero Share.
With this handy guide, you, as a new investor, should now feel confident in navigating EDIS requirements.
Make sure to perform EDIS for every share sale transaction to avoid legal issues down the road.
Regularly monitoring your Mero Share account and keeping EDIS updated will make your investing journey easier in the long run.
Knowledge of key processes like EDIS also helps you make informed decisions as you grow your portfolio.
Frequently Asked Questions
Why is EDIS required in Mero Share?
EDIS electronically verifies your share delivery instructions so the transfer is legal and authentic. It’s mandatory by regulation after selling shares.
When should EDIS be done?
Initiate EDIS on the same day or within the timeframe specified by your broker after selling shares. This avoids penalties.
Do I have to do EDIS for every share sale?
Yes, you have to complete EDIS in Mero Share after the sale of any shares linked to your Demat account as per CDSC requirements.
What if the EDIS option isn't showing in Mero Share?
If the Transfer Shares or EDIS options aren’t visible, your Demat account may not be mapped properly. Contact your broker to resolve this.
Can partial shares be EDISed?
Yes, during EDIS you can specify the quantity of shares you want to transfer in case you sold a portion of your holdings.
Is there a penalty for late EDIS?
If you don’t initiate EDIS within the deadline set by your broker after selling shares, you may be imposed a penalty of around 20% of the sale amount.
How do I contact Mero Share for issues?
You can call the Mero Share support number at 01-4475002 or email them at [email protected] for any EDIS-related queries.
Why is my stock not showing in Transfer Shares?
Shares bought in the last 1-2 days may not reflect. Try again after some time. Newly bought shares take a few days to show under Transfer Shares.