How to Transfer Shares from One Demat Account to Another

There are many reasons why you might need to transfer shares from one Demat account to another. Maybe you are switching brokers for lower fees, consolidating multiple accounts, or transferring shares to a family member. Whatever the reason, the process is straightforward once you know the steps. In this guide, we will explain the different methods to transfer shares between Demat accounts in India.

Why Would You Transfer Shares?

Here are the most common reasons investors transfer shares between Demat accounts:

• Switching brokers: You found a broker with lower brokerage, a better app, or better services.
• Consolidation: You have multiple Demat accounts and want to bring all holdings to one account for easier management.
• Gifting shares: You want to transfer shares to a spouse, child, or other family member.
• Inheritance: Transferring shares from a deceased person’s account to the legal heir’s account.
• Off-market transactions: Selling shares to someone directly without going through the stock exchange.

Method 1: Online Transfer via CDSL easyCDSL

If both your old and new Demat accounts are with CDSL, you can transfer shares online in minutes.

1. Download the easyCDSL app or visit the easyCDSL website (easiest.cdslindia.com).
2. Log in using your BO ID (Demat account number) and credentials.
3. Navigate to “Transact” > “Transfer” or “Delivery Instruction.”
4. Enter the target BO ID (the Demat account number you want to transfer shares to).
5. Select the shares and quantity you want to transfer.
6. Choose the reason for transfer (e.g., off-market transfer, account closure, gift).
7. Verify with OTP and submit.
8. The transfer is usually completed within 24 hours.

Method 2: Online Transfer via NSDL SPEED-e

If your accounts are with NSDL, use the SPEED-e facility.

1. Visit speedebusiness.nsdl.co.in and register if you have not already.
2. Log in with your DP ID and Client ID.
3. Go to “Delivery Instruction Slip (DIS)” section.
4. Enter the target account details (Counter DP ID and Client ID).
5. Select the ISIN (stock identifier) and quantity to transfer.
6. Enter the execution date and submit.
7. Verify with OTP or e-sign.

Method 3: Offline Transfer Using a DIS Slip

If you prefer the offline route or if online transfer is not available, you can use a Delivery Instruction Slip (DIS).

1. Obtain a DIS booklet from your current broker. This is similar to a cheque book.
2. Fill in the details: Target DP ID and Client ID, ISIN number of the shares, quantity, and reason for transfer.
3. Sign the DIS and submit it to your current broker (either physically or by courier).
4. The broker will process the transfer, which usually takes 2-5 working days.

CDSL to NSDL (Inter-Depository Transfer)

If you are transferring shares from a CDSL Demat account to an NSDL Demat account (or vice versa), the process is called an inter-depository transfer. The steps are the same as above, but the processing may take a little longer — typically 2-3 working days. Both online and offline methods support inter-depository transfers.

Charges for Share Transfer

Here are the typical charges you might encounter:

• On-market transfer: Normal brokerage and exchange charges apply (this is essentially selling and rebuying).
• Off-market transfer (within same depository): Rs 25-30 per ISIN (per company) is typically charged by the broker.
• Inter-depository transfer: Similar charges to off-market transfer, sometimes slightly higher.
• SEBI charges: A nominal SEBI turnover fee may apply.

Some brokers waive transfer charges if you are moving shares to them from another broker. Check with your new broker before initiating the transfer.

Important Things to Remember

• Your average buy price may reset: When you transfer shares, the average purchase price shown in your new broker’s app may not carry over. Keep your own records or contract notes for tax purposes.
• Tax implications: An off-market transfer between your own accounts has no tax impact. However, gifting shares to someone else may have tax implications under the Income Tax Act.
• Both accounts must be active: Ensure both the source and destination Demat accounts are active and not frozen.
• Keep your DIS booklet safe: A DIS is like a cheque — anyone with access to it could potentially transfer your shares.
• Verify after transfer: Always check your holdings in both accounts after the transfer to ensure the correct shares and quantities were moved.

The Bottom Line

Transferring shares from one Demat account to another is a routine process that can be done online in minutes or offline within a few days. Whether you are switching brokers or consolidating your portfolio, the key is to use the correct method for your depository, keep records of the transfer, and verify your holdings afterward.