Transferring Shares from One Demat Account to Another

A Demat account transfer refers to the movement of securities, such as shares, bonds, mutual funds, or ETFs, from one Demat account to another. The accounts involved may be with the same Depository Participant or across different depositories like NSDL and CDSL.

This process allows the securities to move from one account to another while maintaining ownership continuity, without requiring a sale or repurchase.

Investors transfer their holdings between Demat accounts for various operational or account-related reasons. Some common situations include shifting to a new broker, consolidating multiple Demat accounts, or reorganising portfolios for easier tracking. Transfers may also be carried out when changing service providers, updating account preferences, or migrating holdings from an inactive account.

Typical reasons include:

• Broker change: Moving securities when switching to another brokerage platform.

• Account consolidation: Combining holdings from multiple Demat accounts into one.

• Portfolio reorganisation: Aligning investments under a preferred DP or account structure.
  

• Inactive or closed account: Transferring securities before shutting an old Demat account.

• Operational convenience: Streamlining tracking and documentation across fewer accounts.

These scenarios highlight why Demat transfer benefits and the reasons to transfer Demat shares often relate to improved account management rather than trading activity.

Understanding a few essential terms makes the transfer process easier to navigate. These identifiers appear on forms and online portals, and they help ensure that securities move to the correct account.

• Depository Participants (DPs): Entities registered with NSDL or CDSL that offer Demat account services.

• Client ID / BO ID: The investor-specific identifier that, along with the DP ID, creates the full Demat account number.

• International Securities Identification Number (ISIN): A 12-digit alphanumeric code used to identify individual securities.

• Target Client ID: The 16-digit unique ID of the Demat account to which the securities will be transferred.

• Delivery Instruction Slip (DIS): A physical form used to authorise the transfer of securities manually.
  

A clear understanding of these terms helps reduce the likelihood of errors when submitting transfer requests, especially while filling out a DIS.

Shares can be moved from one Demat account to another either through a physical form-based process or by using an online facility, depending on the depository and account setup.

1. Manual Transfer Using a DIS

This traditional method involves submitting a filled DIS to your existing DP.

1. Requesting a DIS booklet from your DP

2. Entering details such as ISIN, quantity, DP IDs, and Target Client ID

3. Specifying whether it is an intra- or inter-depository transfer

4. Submitting the signed form for processing
   

Transfers made via DIS typically take 2–5 working days.

2. Online Transfer via CDSL’s Easiest Facility

Available for CDSL account holders, this digital mode allows securities to be transferred electronically.

1. Registering on the CDSL Easiest portal: https://web.cdslindia.com/myeasi/home/login

2. Linking your Demat account and activating the service through your DP

3. Adding the destination account as a trusted beneficiary

4. Selecting securities and confirming the transfer request

Online transfers through Easiest are usually completed within 1–3 working days.

Both methods are recognised by depositories, and the choice between them depends on the depository under which your accounts are held and the mode you prefer.

Choosing the correct transfer type ensures smoother processing. Here are the types of share transfers:

Intra-Depository Transfer

• Both source and destination accounts are under the same depository (e.g., CDSL to CDSL).

• Can be done either manually using DIS or online via CDSL Easiest.

Inter-Depository Transfer

• Involves a transfer across two different depositories (e.g., NSDL to CDSL).

• Must be done manually through a DIS.

• May involve additional verification.

The movement of securities between Demat accounts follows a defined procedure. The steps generally include:

• Step 1: Request a Delivery Instruction Slip (DIS) booklet from your existing Depository Participant.

• Step 2: Enter the required details in the DIS, such as the DP ID, Client ID of the destination account, ISIN of the security, and the quantity to be transferred.

• Step 3: Sign the form and submit it to your DP for processing.

• Step 4: If you are transferring shares online within CDSL, log in to the Easiest platform and complete the transfer by selecting the securities and entering the destination account information.

These steps outline the usual workflow followed by DPs when processing share transfer requests.

Certain details play an important role in ensuring that a transfer request moves through the system without interruptions.

• It is useful to confirm that the DP ID and Client ID are entered correctly

• The signatures provided should match the records held by the DP

• ISIN codes should reflect the exact securities being moved

• Submissions made during working days also help ensure timely processing by the depository and the DP
  

Paying attention to these elements supports smoother handling of the transfer request.

It is possible to move all securities from an existing Demat account to another, especially when you intend to close the old account. This is done through a closure-cum-transfer request.

Step 1: Request and fill the account closure form from your current DP.

Step 2: Provide a transfer instruction for all holdings to the new Demat account.

Step 3: Submit supporting ID proofs and account details.

Once the transfer is completed, the original account is closed as part of the same process.

• Transfer involves moving securities between your own (or linked) Demat accounts. No market activity or price change is involved.

• Trading refers to buying or selling securities via stock exchanges. This involves market execution and price fluctuations.

Share transfer progress can be viewed through the respective depository’s online portal, NSDL or CDSL, using your Demat login credentials.

• Both platforms display updates related to pending, processed, or rejected requests. 

• Offline submissions can also be checked by contacting your DP, who can share the latest status based on the transaction reference number.

Staying updated on the status allows you to track the movement of your holdings and identify if any follow-up is required.

Share transfers usually involve a small fee determined by the Depository Participant handling the request. The amount may vary depending on whether the transfer is intra-depository or inter-depository, as well as the number of securities or ISINs being moved. Some DPs apply charges on a per-ISIN basis, while others use a per-transaction structure. In addition to DP charges, statutory taxes such as GST may apply.

Checking the applicable fee structure beforehand provides clarity on the total cost of processing the transfer.

Share transfer requests may be declined when key information or documents do not match the records maintained by the Depository Participant. Some frequent issues include:

• Signature mismatch, often occurring when the signature on the DIS does not align with the one stored in DP records.
  

• Incorrect DP ID or ISIN entries, which prevent the system from identifying the destination account or the security being transferred.
  

• Incomplete or inaccurately filled DIS forms, such as missing quantities or unchecked transfer type.
  

• Absence of a valid Client Master Report (CMR) when required for verification.
  

Ensuring that all details are accurate and complete helps minimise the possibility of rejection during processing.

Transferring shares between Demat accounts is a routine process carried out either through a physical Delivery Instruction Slip (DIS) or, in the case of CDSL accounts, through the Easiest online facility. The steps involved may differ based on the depository and the method selected. A closure-cum-transfer request is also available for those shifting all holdings while closing their existing account.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.