If you have opened a new demat account or switched brokers, you do not need to sell your holdings and buy them again. You can transfer shares directly from one demat account to another.
This is usually done in one of two ways:
by submitting a Delivery Instruction Slip (DIS) to your current broker
by using the online transfer facility offered by NSDL/CDSL
The right route depends on which depository your account is linked to and whether your Depository Participant (DP)/broker supports online transfer. Most people do it if: They have moved to a new broker. They want to keep all holdings in one account. They have more than one demat account and want to simplify tracking. They want to transfer securities to another person in specific cases. A demat transfer usually involves four parties: The current account holder The receiving account holder The broker or depository participant The depository, which is either NSDL or CDSL The offline route is surprisingly still common because so many veteran investors are familiar with the process. You’ll see this happening more than often, especially when investors are moving shares out of an old broker account. Ask your current broker or DP for a Delivery Instruction Slip. This is the form used to move securities out of your existing demat account. If the source DP is NSDL and the target DP is CDSL, ask for an “Interdepository Delivery Instruction Slip”. The form usually asks for the following: ISIN of the stock Quantity of shares Target DP ID and Client ID Transfer type Reason for Transfer If the source and target account belong to the same person, you can mention the reason as “Transfer to Demat account of the same person”. Otherwise, ask the DP for the list of reasons and select the suitable one from the list. Sign the DIS and submit it to your existing broker. Keep the acknowledgement slip. If there is a mistake in the account number, ISIN, or signature, the transfer can get delayed or rejected. Once the request is processed, the shares are moved to the new demat account. You can also transfer shares online if your account and broker support it. CDSL account holders can use EASIEST. NSDL account holders can use SPEED-e. The broad process is super simple: Go to the relevant depository website and register for the transfer facility. You may need to submit the registration details to your DP for activation. Once activated, you can log in, add the target account, enter the ISIN and quantity, and place the transfer instruction online. This route is easier if you do not want to deal with physical slips, but the exact steps may differ slightly depending on your DP. This is where many investors get confused. This is a transfer directly from one demat account to another without a Stock Exchange transaction. It is commonly used when shares are moved between two personal accounts or transferred to another individual. This applies when the source and destination accounts are not under the same depository. For example, one account is with NSDL and the other is with CDSL. A small error can hold up the whole transfer. Before submitting, verify: ISIN Share quantity DP ID Client ID Name and holding pattern Depository type, NSDL or CDSL Correct transfer mode If you are moving shares between your own accounts, make sure the details match properly. Even small mismatches can cause problems. Usually, yes. Brokers may charge a fee for transferring shares out of a demat account. The charges are not the same everywhere. They depend on the broker, the type of transfer, and sometimes the number of ISINs involved. So before starting the transfer, check the tariff sheet of your broker or DP. Also, Stamp Duty as applicable must be paid to the DP before the execution of off market SALE instruction in the depository system. This depends on who the receiving account belongs to. If both demat accounts belong to the same person In most cases, there is no tax just because you moved the shares from one account to another. You are only shifting ownership records between your own accounts. There is no sale involved at that stage. If shares are transferred to another person The tax treatment can change. A transfer without consideration may be treated as a gift, and the tax consequences depend on the relationship, value, and reason for transfer. That is why it is better not to write blanket statements here. If the transfer is to another person, especially outside immediate exempt relationships, it is safer to check the tax position before proceeding. Most rejected requests usually occur ‘cause of a: Wrong ISIN Wrong DP ID or Client ID Signature mismatch Wrong transfer mode Insufficient shares in the source account Mismatch in account holder details Over-writing or correction without counter-signature of the account holder(s). If you want to move shares from one demat account to another, you do not need to sell them first. You can either submit a DIS to your current broker or use the online transfer facility offered by the depository. The important part is getting the account details, ISIN, and transfer type right. If the transfer is to your own account, the process is usually simple. If it is to someone else, check the tax and documentation angle before you proceed.When do people transfer shares between demat accounts?
Who is involved in the transfer?
How to transfer shares from one demat account to another offline
Step 1: Get the DIS from your current broker
Step 2: Fill in the details carefully
This is the unique code for the security you want to transfer.
Mention the exact number of shares to be moved.
These identify the demat account that will receive the shares.
If the transfer is within the depository system and not through an Exchange transaction, it is generally marked as an off-market transfer. If one account is with NSDL and the other is with CDSL, it becomes an inter-depository transfer. lStep 3: Sign and submit the slip
Step 4: Wait for the shares to be credited
How to transfer shares from one demat account to another online
Step 1: Register on the depository platform
Step 2: Complete verification
Step 3: Log in and place the transfer request
Off-market Transfer vs Inter-depository Transfer
Off-market transfer
Inter-depository transfer
What details should you double-check before submitting the request?
Are there any charges for transferring shares?
Is share transfer between demat accounts taxable?
Common Reasons Share Transfer Requests Fail
Conclusion