How To Transfer Shares From One Demat Account To Another ?

Transfer Shares:- When it comes to investing in the stock market, having a Demat account is vital. Without a Demat account, you won’t be able to purchase or sell any stocks. Trading using a Demat account is similar to transacting with a bank account. The only difference is that instead of sending money, you send shares through a Demat account. The most crucial feature of Demat is that you can open many accounts and store your shares or holdings in each one. However, if you want to transfer your shares into a single account, you can do so. Today we will learn about How To Transfer Shares From One Demat Account To Another

How To Transfer Shares From One Demat Account To Another

Why is it Necessary to Transfer Stocks from One Demat Account to Another?

After opening a Demat account, you can explore the additional features it has to offer. A Demat account can transfer shares to another Demat account in addition to holding shares and securities. It aids in the consolidation of shares, making it easier for a shareholder to see all of his shares at once.

There are a variety of reasons why an investor might need to move shares from one account to another. The following are some plausible explanations:

  • One of the reasons could be to consolidate all of the shares under one roof, making it easier to manage them.
  • Another reason could be that the investor wants to change depository participants in order to get greater returns at a cheaper cost.
  • Because they had a bad experience with their former broker, many shareholders may want to move their shares from one Demat account to another.
  • People transfer shares because they wish to attempt other sorts of investments or time periods, or because they want to switch from a discount broker to a full-service broker. This is common in persons who enjoy taking risks.

Share/Stock Market App

Participants while Moving Shares from One Demat Account to Another

In the process of transferring shares from one Demat account to another, the following people are involved:

  • Present Brokerage
  • Investor
  • A new broker
  • NSDL and CDSL (depository services).

Procedure to Transfer Shares From One Demat Account To Another

You can move your shares or holdings from one Demat account to another in one of two methods. You can do this using either a manual or an online method.

Difference Between Sensex and Nifty in Share Market

Offline Procedure To Transfer Shares from One Demat Account to Another

The process of transferring shares from one Demat account to another is as follows.

  • The investor completes and submits the DIS (Delivery Instruction Slip) to their present broker.
  • The broker sends the depository the DIS form or request.
  • Your existing shares will be transferred to your Demat account by the Depository.
  • Once all of the shares have been transferred, the investor’s new Demat account will reflect the changes.

Manual Transfer of Shares

Manually transferring shares is possible. The following is an example of an offline process for transferring shares from one Demat account to another:

A delivery instruction slip, or DIS, is sent to an investor when he opens a Demat account with a stockbroker, along with the welcome kit. The investor must fill out a document or slip while applying offline. While filling out the details, remember the following information:

  • Target Client ID: This is a 16-digit identification number that is assigned to each investor. It’s the Beneficiary Owner ID, which is also known as the broker’s ID (BO ID)
  • ISIN (International Securities Identification Number):it is a 12-digit number. It aids in the identification of securities such as stocks, equities, notes, bonds, and funds, among others. It should be noted on the slip, together with the number of shares and their value.
  • DP Name: The stockbroker’s or Depository Participant’s name must be stated here.
  • Inter Depository: If the investor wishes to transfer shares from one depository to another, this blank must be filled out.
  • Off Market: This area is occupied by those who want to transfer shares within the same depository.

The following are the last steps after all of the needed information has been entered and the investor has signed the DIS:

  • The investor must submit a signed DIS to his or her present broker.
  • The investor should obtain a copy of the DIS acknowledgement receipt from the broker.
  • After that, the broker will need a few days to transfer the shares to the investor’s new broker’s Demat account.

Types of Mutual Fund

Things To Remember When Transferring Shares

  • The investor’s present stockbroker may charge for this operation. The fees differ from one broker to the next.
  • If the investor wishes to close his or her Demat account with his or her current broker, the process is free.
  • If the investor chooses to close the Demat Account, the unused DIS must be returned to the broker.

Online Mode of Transferring Shares from One Demat Account to Another

Online transfers of shares from one Demat account to another are also possible. The steps that follow provide an overview of the procedure.

  • By clicking on the “Register Online” option on the CDSL or NSDL website, the investor must register his name.
  • The next step is to choose an option for a facility called “Easiest- electronic access to securities information and secure transaction execution.
  • The investor must then supply his personal information.

Top RBI Registered NBFC Companies


How long does it take in transferring shares?

Transferring shares from the investor’s existing Demat account to the new broker takes between 3-5 business days, according to the current broker. The fee for this service varies depending on the broker.

Is it possible to give shares to a friend?

By following a specific method, a person’s shares can be gifted to another person (related or not). Gifting is a transfer that can be done utilizing the “off-market transfer” mechanism since it is a transfer that is made without receiving anything in return.

What actually is a share transfer form?

A stock transfer form (also known as a J30 form) is a standard document for transferring existing shares. It includes information about the seller (or gifter) of the shares and the receiver, as well as the type and quantity of shares being transferred and any consideration paid.

Leave a Comment