Guide to Transferring Shares from One Demat Account to Another

If you hold shares in a Demat account and wish to move them to another, either with a new stockbroker or a separate account in your name, you can do so through a secure and regulated process. This transfer is common for reasons such as portfolio consolidation, shifting to a new broker, or reorganising your holdings.

This page explains how to transfer shares from one Demat account to another, including the available methods, required documents, and key points to consider.

A Demat account transfer refers to the process of moving securities such as shares, bonds, mutual funds, or ETFs from one Demat account to another. These accounts may belong to the same or different Depository Participants (DPs), and may be under the same or different depositories: NSDL and CDSL.

Understanding the following terms will help simplify the transfer process:

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

• NSDL and CDSL: India’s two main central depositories. NSDL (National Securities Depository Limited) is older, while CDSL (Central Depository Services Limited) is more recent.

• 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.

You can transfer shares using either of the following modes:

1. Manual Transfer Using a DIS

This is a traditional offline method involving physical paperwork.

Step 1: Request a DIS booklet from your current DP or stockbroker.

Step 2: Fill in the necessary details:

• ISIN of the securities

• Quantity of shares

• Source and destination DP IDs

• Target Client ID

• Transfer type (Intra or Inter-depository)

Step 3: Attach a self-attested copy of your ID proof if required.

Step 4: Submit the completed DIS form to your DP.

Step 5: The transfer is processed within 2–5 working days.

This method works for both Intra-Depository (e.g., NSDL to NSDL) and Inter-Depository (e.g., NSDL to CDSL) transfers.

2. Online Transfer via CDSL’s Easiest Facility

This option is available only if both Demat accounts are under CDSL. The steps are mentioned below:

Step 1: Register on the CDSL Easiest website: https://web.cdslindia.com/myeasi/home/login

Step 2: Link your existing Demat account and activate the Easiest service through your DP.

Step 3: Add the destination account as a ‘trusted account’.

Step 4: Select the securities, enter ISINs, quantity, and Target Client ID.

Step 5: Authenticate and submit the transfer request.

Step 6: Once the request is verified by your DP, the securities are transferred in 1–3 working days.

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.

Whether you choose the manual or online method, you may need the following:

• Duly filled DIS (for offline transfers)

• Self-attested copy of your PAN card

• Client Master Report of the target account

• Identity proof (Aadhaar card, passport, etc.)

• Signature verification

• Proof of relationship (for third-party transfers)

   

Always check with your DP for any specific documentation they may require.

Keep these key points in mind to ensure a smooth and error-free share transfer process:

• No Sale Involved: Transferring shares does not mean selling them. You retain ownership.

• Check ISINs and IDs: Incorrect entry of ISINs or account numbers can delay the transfer.

• Nominee and Trading Settings: These are not transferred automatically. Update them in the new account.

• Charges May Apply: Some DPs charge a nominal fee. It’s advisable to confirm beforehand.

Below is the general timeframe based on the method of transfer:

Delays can occur if documents are missing or account details are incorrect.

If you want to move all your holdings while closing the existing account, you can opt for a Closure-cum-Transfer. Here are the steps involved in this process:

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.

Step 4: This process ensures that all securities are moved at once, and the old account is closed post-transfer.

• 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.

You can track your share transfer using the following methods:

• Online Transfers: Log in to the CDSL or NSDL portal to view status updates.

• Offline Transfers: Contact your DP directly.

• Alerts: Most DPs and depositories send updates via SMS or email.

   

Keep your transaction reference number ready for quick updates.

Transferring shares from one Demat account to another is a standard and secure process. You can use the manual DIS method or the CDSL Easiest online facility, depending on your DP and depository. Always verify account information and ISINs carefully to avoid delays. For a complete account switch, use the closure-cum-transfer option.

This content is for informational purpose 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.