Transfer Shares from one Demat Account to Another

by Susan Paige on November 20, 2018 · 0 comments

Just as you do with a bank account, you can also use your Demat account to transfer shares from one Demat account to another. Transferring shares does not affect its ownership in any manner, but more importantly, you do not face any tax implications too.

Most investors transfer shares when switching from one broker to another. In some cases, an investor may want to merge all his existing Demat accounts into one functional account; for instance, you may want to transfer the shares of an old account into a new Kotak Securities Demat account or a three-in-one account offered by a host of banks and financial institutions.

If you need guidance on how to transfer shares from one Demat account to another, for any given reason, here are some steps that can help you carry out the transfer easily.

Transferring shares of Demat account can be done either manually or by an online transfer.

Manual/off-line transfer of shares

If you wish to transfer your shares manually, it is essential to know of precise specifications.

Shares are held in two main depositories of India, the National Securities Depository Ltd (NSD L) and the Central Depository Services Ltd (CDSL). Depending on the depository that your broker is affiliated with, you may have to choose either of the depositories for the mode of share transfers.

If your existing and new stockbroker is affiliated with the same depository, there will be An Off-Market Transfer or Intra-Depository Transfer of shares. However, if the existing and new brokers are affiliated with different depositories, an Internal Depository Transfer of shares will be initiated.

To initiate an Intra-Depository Transfer or an Off MarketTransfer, you must use a Debit Instruction Slip or the DIS book given to you by your Depository Participant (DP). In the event of an Intra-Depository Transfer, you need to undertake the following steps on the Debit Instruction Slip.

  • Make a note of the number of shares to be transferred. State the ISIN number as well
  • Make a note of your target Client ID
  • Depending on the mode of transfer, you will want to select the right column. For instance, for an Intra-Depository or Off Market Transfer, choose “Off Market Transfer.” You may want to pay close attention when selecting this option.

On filling the DIS slip, additional steps must be taken. These include:

  • Submit the duly filled and signed DIS slip to your existing broker
  • Collect the acknowledgment receipt from the broker.

Transferring your shares from one Demat account to another usually takes 3 to 5 business days. You may also have to pay a certain fee to your current broker for this procedure.

Online shares transfer

To transfer shares from one Demat account to another online you can merely do so by using CDSL. Visit and register on the CDSL website. On successful registration, submit the completed form to the DB. Once the DP completes the confirmation process, you can make your own future transfers. Transferring shares with reputed online broking firms such as Kotak Securities can save you time and money. To know how to transfer shares online, the following are the steps:

  • Access the CDSL website and select the “Register Online” link
  • Fill in the form with the required details
  • On completing the form, select “Print Form”. The form is transferred to your DP.
  • Once the DP completes the verification process, you can log in and begin to transfer your shares from one Demat account to another.


A Demat account provides easy portfolio management and robust security of your equity investments. You may want to look at a three-in-one account from brokerage firms like Kotak Securities; an all-in-one account where the bank account, trading and Demat account is linked. On the other hand, you can opt for a two-in-one account that offers a linked trading and Demat account.

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