How to Transfer Shares From One Demat Account to Another? Step-by-Step Guide

You can transfer shares from one Demat account to another either online or offline. During the transfer process, the securities remain in electronic form. You can shift shares from one Demat account to another to consolidate your holdings, segregate portfolios, change brokers, gift the securities to a family member, or to close your old Demat account.

Before starting the process, you must ensure that the person transferring the shares and the recipient both have Demat accounts registered with Depository Participants (DPs) linked to either the Central Depository Services Limited (CDSL) or the National Securities Depository Limited (NSDL). You can submit a Closure-cum-Transfer form (free for account closure) or execute an off-market transfer online via CDSL Easiest / NSDL SPEED-e.

This article explains the process, documents needed, and what you should keep in mind during the transfer window.

Key Takeaways

• You can transfer shares both within depositories and from one depository to another.
• If you are transferring shares offline, ensure that you use the Delivery Instruction Slip (DIS) booklet issued by your depository participant.
• Share transfers can be rejected due to reasons such as mismatch in signature or name, negative ledger balance, or pledged shares.
• Capital gains tax may be levied on share transfer from one Demat account to another if there is payment involved.
• Shares with a lock-in period can only be transferred within the same depository (for example, CDSL to CDSL).

How to Transfer Shares From One Demat Account to Another Online: Step-by-Step Guide

You can transfer shares from one Demat to another using either CDSL or NSDL, depending on which DP the accounts are linked to. Inter-depository transfers are also possible on both platforms.

How to Transfer Shares via CDSL Easiest?

Step 1: Register on CDSL Easiest Portal

Visit the CDSL web portal and select ‘Register for Easiest’. Enter your existing broker’s 16-digit BO ID and verify with an OTP.

Step 2: Initiate Bulk Setup

Click on ‘Bulk Setup’ and then click on ‘Transaction’. Enter the date of executing the share transfer and the Beneficiary Owner (BO) ID of the account receiving the securities.

Step 3: Select ISINs and Quantities

Click “Account ISINs” and select the stocks you want to move, enter the quantities, and choose the reason for transfer.

Step 4: Authorise and Submit

Click “Commit”, enter the OTP sent to your mobile/email, and input your 8-digit CDSL Easiest PIN. Your source broker will process the transfer, and the shares will reflect in the other Demat account within 1-3 business days.

Note: If you are transferring shares due to a sale and the client is receiving money, you need to enter the sale amount under “Consideration Amount”. You also need to choose the payment mode of receiving the funds and enter the bank details of the buyer. Clients have to pay stamp duty for the sale to CDSL. In case the transfer is a gift, self-transfer, etc., where no money is involved, no payment mode must be selected, and the consideration amount must be zero.

How to Transfer Shares via NSDL SPEED-e?

Step 1: Register on NSDL SPEED-e

Visit NSDL’s website and register under the IDeAS or SPEED-e facility using your existing NSDL DP ID and Client ID. Download the signed SPEED-e registration form and submit it to your current NSDL broker for verification.

Step 2: Set Up Transfer Request

After account activation, log into NSDL SPEED-e and navigate to “Inter-Depository Transfer”. Enter details such as the recipient’s DP ID, your Client ID, stock ISINs, and transfer quantities.

Step 3: Verify via OTP

Confirm the transaction using OTP/OTP-token verification. The transfer takes approximately 1-3 working days.

How to Transfer Shares From One Demat Account to Another Offline?

If you prefer physical documentation or if your old broker does not support online transfers, use a Delivery Instruction Slip (DIS) booklet provided by your existing broker to initiate the process offline.

Step 1: Obtain DIS Booklet

Request a physical DIS booklet from your current stockbroker.

Step 2: Fill in Demat Account Details

Enter the recipient’s 16-digit Target BO ID. Check “Intra-Depository” if transferring from CDSL to CDSL, or “Inter-Depository” if moving from NSDL to CDSL or vice-versa.

Step 3: Specify Stock Details

Write down the company names, 12-character ISIN codes, and exact share quantities.

Step 4: Attach Client Master Report (CMR)

Enclose a copy of your digitally signed CMR to prevent transfer rejection.

Step 5: Submit to Current Broker

Hand over the completed, signed DIS slip to your existing broker’s nearest branch office and collect an acknowledgement receipt.

Details Needed Before Initiating Transfer of Shares Between Demat Accounts

• 16-Digit BO ID (Beneficiary Owner ID): You need the BO ID of the recipient. It is formed by combining the 8-digit DP ID and 8-digit client ID. You also need your BO ID.
• Name and PAN: The name and PAN of the recipient are needed for even transfers within your own Demat accounts.
• Client Master Report: It is an official document from the depository participant confirming your Demat account details, DP ID, PAN, and depository affiliation. You can download a digitally signed CMR directly from your broker’s app or web platform.
• ISIN (International Securities Identification Number): It is a unique 12-character code assigned to each security (e.g., INE002A01018 for Reliance Industries).

What are the Different Types of Share Transfers in a Demat Account?

1. Closure-cum-Transfer (Full Portfolio Migration): If you intend to shut down your old broker account completely, select the Closure-cum-Transfer process.
2. Cost: It is free. Brokers cannot levy transfer charges when closing an account.
3. Method: It requires submitting a physical account closure form along with the broker’s Client Master Report to your current broker.
4. Off-Market Transfer (Selective Transfer): If you wish to keep your old broker account active and only move specific stocks to another DP, execute an Off-Market Transfer. This is further divided into:
   • Inter-depository transfer: If you wish to transfer between two different depositories (for example, NSDL to CDSL), you need to choose an inter-depository transfer on your application.
   • Intra-depository transfer: The transfer is conducted between two Demat accounts on the same depository (CDSL or NSDL).
5. Cost: ₹25 per security, plus 18% GST.

Comparing Transfer Methods

Method	Applicable When	Typical Cost	Timeline
Closure-Cum-Transfer	Closing the old broker account entirely	Zero charge on the transfer leg (conditions apply)	2 working days
CDSL Easiest	Both accounts on CDSL	Nominal DP charge per ISIN at source broker	1-3 business days
NSDL SPEED-e	Both accounts on NSDL. Also used to transfer shares from NSDL to CDSL Demat account	Nominal DP charge per ISIN at source broker	1-3 working days
DIS (Offline)	No online transfer support, or preference for physical process	Nominal DP charge per ISIN at source broker	Broker-dependent, typically slower than online routes

Updating Average Buying Price After Transfer of Demat Account Shares 

When shares arrive from an external broker, depositories only transfer the quantity and not the historical purchase price. As a result, your holding will initially show an NA or default buy price in the broker’s app or website. Here’s how you can fix it. 

Step 1: Login to the app or web portal of your broker. 

Step 2: Go to Portfolio > Holdings. 

Step 3: Locate the transferred stock showing NA buy price. 

Step 4: Click Update Buy Price/Average Price, input your original purchase date and price per share, and save. 

Read More About: What is a Brokerage Account? 

Key Restrictions and Transfer Rejection Reasons 

To ensure your share transfer succeeds without delay, review these essential conditions: 

Common Rejection Reason	Cause	Corrective Action
Active Open Futures & Options (F&O) Positions	Derivative margin tied up with old broker	Close all open F&O contracts before starting.
Pledged/Lock-in Shares	Shares locked under Equity Linked Savings Scheme (ELSS) or collateralised	Unpledge collateral shares or verify depository limits for locked-in shares
Negative Ledger Balance	Unpaid brokerage or DP maintenance fees	Clear all debit dues with the source broker
Signature Mismatch	Physical DIS signature differs from record	Sign the DIS slip exactly as on your PAN card/initial KYC
Demat Account Not Active	No transactions occurred in Demat account in over 12 months, making it dormant	Reactivate the account with your DP, clear any pending dues and resubmit the share transfer request
Joint Account Mismatch	Primary/Secondary holder sequence differs	Ensure holder order in the new account matches the old Demat account exactly

Tax Implications of Share Transfer From One Demat Account to Another

Transferring shares to someone else's account without payment is legally treated as a gift. The sender does not have to pay any capital gains tax upon gifting, as no sale consideration is received.

Now, the tax liability shifts to the receiver:

The receiver may have to pay income tax (under "Income from Other Sources") if the total market value of the shares exceeds ₹50,000 in a financial year.

Exemptions

This tax does not apply if the shares are received from a notified close relative (such as a spouse, sibling, parents, or linear ascendants/descendants), received through an inheritance/will, or given on the

Things to Consider While Transferring Shares From One Demat Account to Another

• Account status: Both the source and target accounts must be active. If your account is dormant, your share transfer request will be automatically rejected. Ensure any inactive accounts are reactivated beforehand.
• Broker & Depository fees: Some brokers charge a nominal transfer fee (or delivery-instruction-slip charges) for moving securities out of the account.
• Lock-in periods: For shares subject to a lock-in period (such as promoter shares or anchor investor shares), transfers are strictly restricted and usually permitted only between accounts within the same depository (e.g., CDSL to CDSL).
• Execution method: If you are executing the transfer offline, use only the official Delivery Instruction Slip (DIS) booklet issued specifically by your Depository Participant.
• Record keeping: Always store your DIS slip counterfoil or online transfer acknowledgment safely in case you need to raise a query with your broker or depository.

Conclusion

Transferring your shares from one Demat account to another is a simple, transparent way to streamline your portfolio and change brokers. Whether you opt for a complete account migration or select specific stocks, ensuring your BO ID and CMR details are accurate guarantees a hassle-free transition. You need to ensure that the signature and sequence of names on the Demat share transfer request is the same as PAN records for the action to take place. Consult an expert for taxation implications of any Demat share transfers to remain compliant with income tax rules.