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How to Transfer Shares from One Demat Account to Another?

June 14, 2022

Want to know how to transfer shares from one demat account to another? Well you have landed on the right article!

A Demat account is essential to put your money in the stock market. You can't buy or exchange any offers without a Demat account.

Exchanging through a Demat account is like making exchanges through a financial institute or bank. The main distinction is moving shares through the Demat account rather than as cash.

An essential aspect of this type of account is opening more than one account and keeping your shares or property across various Demat accounts. However, if you choose to do so, you can also move every one of your shares into a single account.

How to Transfer Shares from One Demat Account to Another?

It is critical to be aware of certain parameters when manually transferring shares from one Demat account to another. First, it's crucial to understand that the transferred shares are kept and maintained in depository systems.

You can manually transfer your shares if you choose to do so. For this purpose, it is essential to know the following step-by-step process.

1. Depository systems of old and new brokers

Any shares being moved are kept with and held in depository systems. The two depositories of India that are approved to hold the portions of the shareholders are the National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

The transfer method of the shares changes according to the deposit that your broker is associated with. Suppose the record holder's current and new brokers are associated with the same similar depository, either NSDL or CDSL.

In that case, it requires an intra-depository transfer (or an off-market transfer) of shares. On the other hand, if the current and new brokers are connected to different depositories, there will be an inter-depository exchange of the offers.

Offers can be moved physically from one depository to another.

2. Inter-depository exchange or an off-market move

The Depository Participant (DP) is the registered agent of a depository. The DP provides the account holder with a Delivery Instruction Slip (DIS) When an inter-depository exchange or an off-market move is made.

The account holder must fill and submit this to the DP to initiate the inter-depository exchange.

A different DIS is required for every new transfer. You can't open more than one Demat account with the same DP. The second Demat account may have the same only as long as there is an alternate combination of account holders.

3. Essential details to include in the Delivery Instruction Slip

When a financier opens a Demat account with a stockbroker, he is given a delivery instruction slip or DIS alongside the welcome unit. The account holder needs to fill in the important details connected to the exchange of shares in the DIS below. Only if these details are complete can the shares be moved.

  • Recipient Broker ID - This will be the 16 digit ID of your broker.

  • Target Client ID: It is a 16-digit ID number assigned to the financer. It is the dealer's ID, otherwise called Beneficiary Owner ID (BO ID)

  • ISIN: International Securities Identification Number or ISIN, which has 12 digits. It helps with distinguishing protections like stocks, values, notes, securities, reserves, and so forth. It should be referenced in the slip, alongside details of the shares with the quantity.

  • DP Name: Here, the name of the stockbroker or Depository Participant should be referenced.

  • Inter Depository: This part must be completed to move shares starting with one depository then onto the next.

  • Off Market: This space is topped off for exchanging offers inside the same depository.

Note: If you opt for the transfer of shares via a broker, charges may vary on different brokers.

How to Transfer Shares from One Demat to Another Online

When all the necessary data have been completed and the financial backer has marked the DIS, coming up next are the last steps that you need for how to transfer shares from one demat account to another online:

Step 1 – Once on the CDSL website, click on the 'Register Online' link.

Step 2 – The next step is to complete the form with the necessary information.

Step 3 – After filling out the form, choose 'Print Form' from the drop-down menu. The form will be transmitted to the account holder's DP once it has been printed.

Step 4 – Once the DP has completed the form's verification process, a password will be emailed to the account holder's email address.

Step 5 – The account holder can log in and transfer the appropriate shares using the specified password.

 transfer the appropriate shares

Things to remember while moving shares

  • The current stock-broker may charge the financial backer for this technique. The charges shift from one specialist to another.

  • If the financial backer wants to close the Demat account with the current agent, this interaction is liberated from cost.

  • Assuming that the financial backer chooses to close the Demat Account, he wants to get the unused DIS once again to the online exchange of shares, starting with one Demat account then onto the next:

Central Depository Securities Limited (CDSL) has an element called EASIEST, through which you can move shares starting with one Demat account then onto the following online.

Time Required for Transfer of Shares

Usually, it should not take more than 3-4 hours to complete the transfer of shares from one Demat account to another. However, this depends on the repository.

The option to transfer comes with the two repositories. If the transfer is done via an NSDL account to a CDSL account, it might take an estimated time of 3 to 4 hours.

I hope you liked our article on how to transfer shares from one demat account to another, if you have any comments or suggestions do share them in the comments below. 

Frequently Asked Questions

1. How to transfer shares from one account to another offline?

You can do this by submitting a Delivery Instruction Slip (DIS). Other required information, such as the ISIN number of the shares, the name of the claims, the DP ID of the record to which the shares are to be moved, should also be finished up.

2. How to transfer shares to another person?

One requirement is to finish up a DIS (Delivery Instruction Slip). ISIN number of the shares to be moved, name of the organisation (security), Demat record, and DP ID of the account to which the shares are being moved should be mentioned in the application form.

3. Would I be able to have 2 Demat accounts?

Financers can open various Demat accounts, just as the records are opened with various Depository Participants. You can't open more than one Demat account with a similar DP. You can open a second Demat account with a similar DP, yet with an alternate combination of account holders.


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About the Author

Prakash is a passionate individual who loves to live his life up to full potential. An avid traveller and reader, he loves to explore various places and has quite a knack for research. He is intuitive by nature and possess the ability to handle multiple informational resources at one time. Prakash is dedicated and sincere in approach and he loves networking with like-minded people.

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