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Demat transfers: Your guide to transferring shares between demat accounts 

To transfer listed shares from one demat account to another, account holders need to fill out DIS. Learn more.

transfer shares from one demat to another

“Can I transfer shares from one demat to another?” is a question that many active investors may have asked. Yes, it is! Your shares are transferred to a new owner when you sell securities. Having said that, it is possible to move shares across demat accounts if you have more than one.

Even if the process of transferring shares might be simple, it’s crucial to understand every step of the procedure and the people that are involved. Investors must understand how to transfer shares, regardless of whether they have consolidated their interests, switched brokers, or given shares as gifts to close relatives. But before we learn the share transfer procedure, let’s first have a clear idea of what a share transfer is.

Also read: What is demat account: All you need to know?

Transfer of shares: What is it exactly?

A demat account can be used to move shares to another demat in addition to holding stocks and assets. It facilitates share consolidation, which makes it simple for an investor to have an overview of all of his shares.

When securities are moved from a demat account to another, it is termed as “transferring shares.” Physical share certificates are no longer required in India since shares are stored electronically via a demat account. Let’s look at a few of the main reasons behind this before we look at how to transfer shares from a demat account.

Reasons for demat transfer 

Some factors may motivate shareholders to make demat transfers. These factors are:

  • Switching depository participants (DPs) or brokers in search of superior services or more affordable brokerage fees.
  • Merging assets from many demat accounts into one account to improve the management of one’s portfolio.
  • Giving stock to close ones or relatives as a gift or inheritance.
  • Move or change residences and transfer shares to a new demat account because of that.

How to transfer shares from one demat account to another?

You may move your shares from your current demat account to a new one in two ways.

Manual mode of transfer:

The first thing you must do is ask your present broker for a Delivery Instruction Slip (DIS). This slip will include details on the transfer of shares. To effectively transfer the shares, you must complete the transfer information. 

The following is the information you must fill out:

Beneficiary broker ID: This is a 16-digit special ID that belongs to the broker or the banks that are transferring money. You must provide identification for both your new and current brokers on the slip.

ISIN (International Securities Identification Number): Your account’s unique share is identified by this number. Make sure to input this number with the quantity of shares with the utmost caution.

Transfer method: Off-market transfers are required if you want to conduct an intra-depository transfer. If not, go with the inter-depository choice. When shares are moved between depository accounts, such as from NSDL to CDSL or the other way around, it’s known as an inter-depository transfer. On the other hand, when the transfer of shares takes place within the same depository, for example, from one CDSL to another CDSL account, this is referred to as an intra-depository transfer.

Online mode of transfer

You may easily transfer your shares through the CDSL or NSDL associated depository companies online. CDSL and NSDL make it simple to move shares online across demat accounts. To transfer shares online, do the actions listed below:

  • Register on the CDSL or NSDL website, depending on the brokerage you are tied up with.
  • Select the “Register Online” option. 
  • Choose the “EASIEST” or “Speed-e” option accordingly.
  • Complete the requested fields. 
  • Copy the information to your depository participant.

The central depository will get a copy from the depository participant. You’ll get the login credentials within a day or two when they validate the information you provided. You may access your broker list by logging in using these credentials. You can now easily move your stocks.

Also read: SGX Nifty to GIFT Nifty brings new opportunities

Participants involved in share transfer

The following parties are required in the process of transferring shares between demat accounts:

Current broker: This is the broker or the depository participant with whom the investor has the existing demat account. The current broker is responsible for verifying the DIS filled by the investor and forwarding it to the depository for processing the transfer request.

Investor: This is the person who owns the shares and wants to transfer them from one demat account to another. The investor has to fill out the DIS with the details of the beneficiary broker, the ISIN of the shares, the quantity of the shares, and the mode of transfer. The investor also has to sign the DIS and submit it to the current broker.

New broker: This is the broker or the DP with whom the investor wants to open a new demat account or has already opened one. The new broker will receive the shares from the depository after the transfer is completed. The new broker may charge a fee for opening a new demat account or for accepting the transferred shares.

Depository: This is the entity that holds the electronic records of the shares in the demat accounts. There are two depositories in India: NSDL and CDSL. The depository will execute the share transfer process based on the DIS received from the current broker. The depository will also update the records of share ownership accordingly.

Charges for transfer of shares from one demat to another

In India, the cost of moving shares between demat accounts might differ based on the brokerage company or the depository party. If an investor wants to terminate their demat account with their present broker, this process may be completed for free.

Tax implications

  • There won’t be any taxes due if the shares are transferred to the same individual.
  • You will not be responsible for taxes if you transfer shares into another person’s account and use a gift deed; otherwise, you will need to explain why the transactions were made.
  • Any income received as a result of the transfer can be recognised as a capital gain, which is taxable income.

Also read: An essential guide to shares – types & significance


In India, there are two ways to transfer shares between demat accounts: manually and online. Online transfers are more convenient and quicker to do than manual transfers, which need physical papers and take longer to execute. It is vital for investors to comprehend the procedures, parties involved, and tax implications related to share transfers in order to guarantee a seamless and trouble-free demat transfer.

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