How to Transfer Shares from One Demat Account to Another

Transferring shares from one Demat account to another involves the movement of securities from one stockbroker to another
How to Transfer Shares from One Demat Account to Another
3 mins
22 August 2023

The process of opening a Demat account is easy. However, people tend to fall back on transferring shares from one Demat account to another. It can be an easy and effortless process with the right broker and adequate information.

There are two methods (online and offline) to transfer shares from one Demat account to another. We will discuss both methods here.

What is transfer of shares?

Transfer of shares is when the ownership of the shares is transmitted from the current holder to another person. The owner can do this at any point to raise working capital or re-organise their investment structure. It makes it easier for a shareholder to see all their shares together.

Why transfer shares from one Demat account to another?

  • Reduction in brokerage charges: You may want to reduce brokerage fees by opening a Demat account with a discount broker.
  • Better services: You may want to switch from your current broker to avail yourself of benefits such as a robust trading platform with enhanced security.
  • Securities management: You may want to categorise shares based on your financial goals such as child’s marriage or retirement planning. Separating for taxation purposes can also be a reason. You can also keep separate Demat accounts for trading activities and investment portfolios.
  • Consolidation of holdings: Multiple Demat accounts with different brokers can be consolidated into a single Demat account with all the securities. This approach can help you in lowering Demat account charges for maintaining idle accounts.

There are two primary depositories in India to hold dematerialised securities in a Demat account for investors:

  • National Securities Depository Limited (NSDL)
  • Central Depository Services India Limited (CDSL)

Additional read: What is the difference between equity shares and preference shares

Transfers shares from one demat to another - step by step process

The following is the process of transfer of shares from one Demat account to another in brief.

Step 1: Fill out the DIS (Delivery Instruction Slip) and give it to your broker.
Step 2: The broker sends your request to the depository.
Step 3: The Depository moves your shares to your new Demat account.
Step 4: Your new Demat account shows all your shares after the transfer is done.

Transfer shares either manually or online

Method 1: Manual/ offline transfer

You need to understand some of the DIS components to complete the offline transfer process.

Step 1: To transfer shares manually, you are required to fill in the following details carefully in the Delivery Information Slip (DIS) provided by your broker.

  • ISIN Number: The shares will be transferred based on ISIN numbers. It is a 12-digit code that authenticates shares. Do double check the ISIN number mentioned in the DIS.
  • Beneficiary Owner ID/ Target Client ID: It is the 16-digit code which is a combination of DP ID and Client ID.
  • Mode Selection: Use predefined reason codes to select the mode - Intra-depository transfer or inter-depository transfer. The intra-depository transfer is the "Off-market transfer'. Choose carefully.

Step 2: Sign the DIS with the same signature you put with your existing broker when opening the Demat account.

Step 3: Submit the DIS to the existing brokerage firm. They will issue you an acknowledgement slip.

Now you can share transfers with national depositories. The shares show up in your new Demat account within 3-5 days.

Method 2: Online transfer of shares

Follow these steps to understand how to transfer shares from one Demat account to another online:

Step 1: Online transfer of shares through CDSL's 'Easiest’ facility and NSDL's ‘Speed-e’ facility. Get registered at CDSL or NSDL website.

For NSDL - Visit this page > New User Registration > Speed-e>Register

For CSDL - Click here > Register for Easiest > Enter Demat details, OTP, account details (DP ID, Client ID, email id etc.)

Step 2: Once the form is filled and submitted to the website, you need to take a printout of the form and submit it to your broker.

Step 3: The broker will further submit the form to the central depository to verify your details.

Step 4: Once the broker verifies your details, your account will be activated, and you will receive login credentials through email. Now you can log in and transfer shares from one Demat account to another.

Participants in the transfer of shares

The primary entities engaged in facilitating the transfer include

  1. Transferor: The individual currently in possession of the shares who initiates the transfer process.
  2. Transferee: The designated recipient, either an individual or entity, slated to become the new owner of the shares.
  3. Depository Participants (DPs): These entities are duly authorised and registered with esteemed depositories like NSDL or CDSL, offering Demat account services.
  4. Depositories: NSDL and CDSL stand as the esteemed custodians responsible for the secure storage and management of securities in dematerialised form.

Things to keep in mind while transferring shares

When transferring shares between Demat accounts, there are several important considerations to keep in mind:

  1. Select a reliable DP: Ensure you choose a trustworthy and reputable Depository Participant (DP) for the new Demat account. This helps safeguard your assets and ensures a smooth transfer process.
  2. Verify details: Double-check all the essential details such as ISIN (International Securities Identification Number), DP ID, client ID, and beneficiary account numbers to avoid any errors or discrepancies during the transfer.
  3. Maintain records: Keep thorough records of the transfer deed, share certificates (if applicable), and any other relevant documents associated with the transfer. This documentation is crucial for maintaining transparency and resolving any potential disputes in the future.
  4. Track the transfer process: Stay proactive and monitor the progress of the transfer. If there are any delays or issues encountered during the process, promptly follow up with the DPs involved to address them and ensure a timely completion.
  5. Consider tax implications: Seek guidance from a tax advisor or a chartered accountant to understand the tax implications of the share transfer. It's important to comply with reporting requirements and fulfill any tax obligations associated with the transfer to avoid any penalties or legal complications.

By keeping these points in mind, you can facilitate a seamless and secure transfer of shares between Demat accounts.

Tax implication

When a shareholder transfers shares from a Demat to another held in his name, there is no tax liability, but the broker can charge a transfer fee.

If a shareholder transfers shares to another person, for example, his spouse or children, he has to provide a clear and legitimate reason for doing so. It must be supported by a gift deed to avoid tax liability. Here the capital gain taxes will be applicable.


In conclusion, transferring shares from one Demat account to another is a process that demands careful attention to detail and adherence to various considerations. From selecting a reliable Depository Participant to verifying crucial details and maintaining thorough records, each step plays a vital role in ensuring a smooth and secure transfer. By following these guidelines diligently, investors can navigate the share transfer process with confidence, safeguarding their assets and complying with regulatory requirements effectively.

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Frequently asked questions

How to transfer shares from one Demat to another online?

To transfer shares online between Demat accounts:

  1. Visit the CDSL or NSDL website.
  2. Register for the 'Easiest' or 'Speed-e' facility.
  3. Fill the form with necessary details and submit it.
  4. Send a copy of the form to your depository participant, who will forward it to the Central Depository.
  5. Upon verification, you'll receive login credentials within 1-2 days.
  6. Use the credentials to log in and initiate online share transfers from your Demat account.
Can you move stocks from one broker to another without selling?

Yes, stocks can be transferred between brokers without selling. This involves transferring shares directly from one Demat account to another, typically initiated by submitting a transfer request form to the respective depository participant.

How much time does it take to transfer shares from one Demat account to another?

The time taken to transfer shares from one Demat account to another varies. Typically, it takes around 2-3 business days for the transfer process to complete, subject to verification and approval by the respective depository participant and Central Depository. However, this timeframe may vary based on factors such as the efficiency of the involved parties and any unforeseen delays in the process.

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