How to Transfer Shares From One Demat to Another

Shares can be transferred from one Demat account to another through an online depository facility or a physical Delivery Instruction Slip.

• Use CDSL EASIEST if the transfer facility is available for your CDSL Demat account.
• Use NSDL SPEED-e if the facility is available for your NSDL Demat account.
• Alternatively, submit a signed Delivery Instruction Slip to your existing Depository Participant.
• Enter the correct ISIN, quantity, source account details and beneficiary account details.
• Select an off-market transfer for a transfer outside the exchange settlement process.
• Select an inter-depository transfer when the two accounts are held with different depositories.
• Brokers or Depository Participants may charge a transfer fee.
• The processing time may vary depending on the Depository Participant, transfer method and verification requirements.
   

You can transfer shares through a physical Delivery Instruction Slip or an online facility provided by the depository.

Step 1: Obtain and fill in the Delivery Instruction Slip

Request a Delivery Instruction Slip, or DIS, from the Depository Participant managing your existing Demat account.

Enter the following details carefully:

• Target Demat account details: Enter the beneficiary account details of the Demat account receiving the shares. For an NSDL account, this generally includes the DP ID and client ID. For a CDSL account, it generally includes the 16-digit beneficiary owner ID.
• ISIN: Enter the International Securities Identification Number of each security you want to transfer.
• Quantity: Mention the number of shares or securities you want to transfer.

• Transfer type: Select the appropriate transfer type based on the nature of the transaction and the depositories involved.

  
  

Choose an off-market transfer when the securities are being transferred outside the stock exchange settlement process. Choose an inter-depository transfer when one account is with CDSL and the other is with NSDL.

Step 2: Submit and complete the transfer

Sign the DIS according to the signature registered with your Depository Participant. Submit it to the Depository Participant managing your existing account.

Your Depository Participant may charge a transfer fee. The amount and processing time can differ between service providers.

How can you transfer shares online through CDSL EASIEST?

CDSL provides EASIEST, which stands for Electronic Access to Securities Information and Execution of Secured Transactions. It allows eligible account holders to submit instructions such as off-market and inter-depository transfers online.

Follow these steps:

1. Register online: Visit the official CDSL website and select the option to register for EASIEST.
2. Enter your details: Provide the requested Demat account and personal information.
3. Select the transfer setup: Choose the available transfer option and add the beneficiary account as required.
4. Complete verification: Your registration and beneficiary details may need approval from your Depository Participant.
5. Log in to EASIEST: Use your registered credentials after the facility has been activated.
6. Select the securities: Enter the ISIN and quantity of the securities you want to transfer.
7. Review the details: Check the beneficiary account, ISIN and quantity before confirming.
8. Authorise the transfer: Complete the required authentication and submit the instruction.

Registration and transfer timelines can vary depending on the Depository Participant and verification process.

NSDL account holders may use SPEED-e where the service is enabled for their account. The registration, authorisation and transfer process may differ from CDSL EASIEST.

You may transfer shares for several reasons.

To reduce account or brokerage costs

You may move your holdings to another broker or Depository Participant whose charges are more suitable for your requirements.

Check the transfer charges, annual maintenance charges and other applicable costs before making a decision.

To access different services

You may transfer your holdings because another Depository Participant offers services or account features that better suit your needs.

Review the service terms and security measures before opening or transferring to another account.

To manage securities separately

You may use separate Demat accounts for different financial goals, such as retirement planning or a child’s future expenses.

For example, you may keep long-term investments in one account and securities used for regular trading in another. Separate accounts may also make record-keeping easier.

To consolidate your holdings

You may combine holdings from several Demat accounts into one account.

For example, if you have inactive accounts with different brokers, consolidation can make your portfolio easier to track. It may also help you avoid paying maintenance charges on accounts you no longer use.

India has two main depositories that hold securities in electronic form:

• National Securities Depository Limited

• Central Depository Services (India) Limited

  
  

Your Demat account is opened through a Depository Participant registered with one of these depositories.

The main participants in a share transfer include the following.

Transferor

The transferor is the person who currently owns the shares and initiates the transfer.

For example, when you move shares from your existing Demat account, you are the transferor.

Transferee

The transferee is the person or entity receiving the shares.

The transferee may be the same person when shares are moved between accounts held in the same name. It may also be another person when shares are transferred as a gift or for another permitted reason.

Depository Participants

Depository Participants, commonly called DPs, provide Demat account services and act as intermediaries between investors and depositories.

The DP managing your existing account processes the debit instruction. The DP managing the receiving account facilitates the credit of securities.

Depositories

NSDL and CDSL are depositories that maintain securities in electronic form.

They record transfers based on instructions submitted through their registered Depository Participants and authorised electronic facilities.

Consider the following points before submitting a transfer request.

Select a reliable Depository Participant

Choose a Depository Participant registered with the relevant depository.

Review its charges, service terms and account-related processes before transferring your holdings.

Verify all account details

Check the ISIN, quantity, DP ID, client ID and beneficiary owner ID, as applicable.

For example, entering an incorrect ISIN may result in the wrong security being selected or the transfer request being rejected.

Maintain proper records

Keep copies of the DIS, acknowledgement, online confirmation and other supporting documents.

These records can help you track the transaction or raise a query if there is a delay or mismatch.

Track the transfer

Monitor both the source and receiving Demat accounts after submitting the instruction.

Contact the relevant Depository Participants if the securities are not debited or credited within the communicated processing period.

Consider the tax implications

The tax treatment depends on whether you are transferring shares between your own accounts, gifting them or transferring them for consideration.

Consult a qualified tax professional when transferring securities to another person or when the transaction may have reporting or tax consequences.

Transferring shares between two Demat accounts held in your own name does not generally represent a sale. Therefore, the transfer itself normally does not create capital gains, although the Depository Participant may charge a transfer fee.
Moving the shares does not change their original purchase cost or acquisition date. These details may be required when you later sell the shares and calculate capital gains.
When shares are gifted to another person, the tax treatment depends on factors such as the relationship between the giver and recipient and the applicable tax rules. A gift deed or other supporting document may be used to record the nature of the transfer.
Capital gains do not automatically arise merely because shares are gifted. However, tax may apply to the recipient in certain cases, and capital gains may arise when the recipient later sells the shares. You should consult a tax professional for advice based on your circumstances.
 

Transferring shares from one Demat account to another requires accurate account details, the correct ISIN and proper authorisation. You can complete the transfer through CDSL EASIEST, NSDL SPEED-e or a physical Delivery Instruction Slip, depending on your account and the facilities available.
Before submitting the request, verify the beneficiary details, transfer type and quantity of shares. Keep the supporting records and monitor both Demat accounts until the transfer is completed. For transfers involving another person, consider obtaining professional guidance on documentation and possible tax implications.