Moving your shareholdings between demat accounts makes it easier whether you want to invest, save fees, or change ownership. Whether you are consolidating your investments to one or changing brokers, knowing how to transfer shares from one demat to another will ensure everything will go smoothly and comply with your portfolio protection in place.
Overview
Transferring shares involves more than just a few clicks- the process is structured, and legal and technical procedures guide the share transfer certificate. In this table, we will look at the mechanics of how share transfer can be executed effectively and simply.
| Aspect | Details |
|---|
| What is Transfer Shares? | Moving securities from one demat account to another |
| Modes of Transfer | Offline (DIS form) or Online (transfer shares from one demat to another online) |
| Participants Involved | Transferor, Transferee, Depository Participants, NSDL/CDSL |
| Typical Charges | ₹10–₹30 per transaction or 0.03% of value (transfer shares from one demat to another charges) |
| Tax Implications | No tax for self-transfer; gifts/others may trigger CGT or gift tax |
| Timeline | Intra-depository: ≤ 1 day; Inter-depository: 1–4 hours |
What Are Transfer Shares?
Transfer of shares is the process of moving your shares from one demat account to your new demat account. This is needed if you are changing brokers, consolidating shares, or giving shares to a family member. The transferring of shares from one demat account to another can be done via four approaches:
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Transfer shares from one demat to another online/Offline.
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Transfer shares from one demat to another online CDSL.
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Transfer shares from one demat to another online NSDL.
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Transfer shares from one demat to another person.
The transfer of the above shares is governed by the transfer of shares under the Companies Act 2013. The legal ownership will stay the same while you change custodians.
Also Read: SEBI’s New Decision For Demat Account Holders
What Are The Different Ways To Transfer Shares From One Demat Account To Another?
There's no standard way to move your shares. Let’s explore online and offline options to assist your choices.
Transfer Share Form One Demat Account To Another Offline
If you prefer to do things on paper, you can transfer your shares through a DIS (Delivery Instruction Slip) you submit to your broker in the offline approach.
Step 1: A Delivery Instruction Slip (DIS) as given by your broker.
Step 2: Fill in the recipient's DP ID, Client ID, ISIN, quantity and sign.
Step 3: Submit to DP and get an acknowledgement.
Step 4: Shares will be reflected in the new account within 3-5 days.
Transfer Share Form One Demat Account To Another Online (CDSL Easiest / NSDL Speed-e)
Alternatively, you can transfer shares from one demat to another online CDSL easiest or NSDL Speed-e, which allows for a quicker and paperless share transfer with a few clicks.
Step 1: Register on the CDSL or the NSDL platform (another quick way to do this is to transfer shares from one demat to another online NSDL).
Step 2: Add the recipient as a trusted beneficiary.
Step 3: Select the shares, submit the request and authenticate digitally.
Step 4: Transfer will happen within a few hours, subject to the cut-off times.
Why Transfer Shares From One Demat Account To Another?
Why do people transfer shares between accounts? The reasons aren't only about changing brokers - learn how you, too, may benefit from the transfer of shares.
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Broker Consolidation: Have fewer platforms that you access, lower fees, and improved service.
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Estate Planning or Gift: Pass on shares to family members in a secure manner.
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Investment Simplification: Fewer accounts with multiple holdings - hard to keep track of.
Who Are The Participants In The Transfer Of Shares?
When transferring shares, there are several important parties to consider, beyond the sender and receiver. Understanding these will help you understand the roles of depositories, DPs and how they all fit into the transfer process.
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Transfero: The current holder of the demat account is transferring the shares.
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Transferee: The person receiving the shares.
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DPs: The depository participants (CDSL & NSDL).
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Depositories NSDL and CDSL (the transfer agent).
Charges To Transfer Shares From One Demat Account
Before transferring shares, it is beneficial to understand what it may cost you. In simple words, transfer shares from one demat to another charges. Let's take a look at various fee structures:
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Flat fee per transaction: ₹10 – ₹30.
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Percentage of transaction value: ~0.03%.
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Inter-depository transfers may be more expensive, because it is routed between the depositories.
Also Read: How To Create A DigiLocker Account: Step-by-Step Complete Guide
Things To Consider When Transferring Shares
There are several important items that you need to cross-check before finalising your transfer of shares. Here’s a checklist for transferring shares so you prevent mistakes and delays.
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Make sure the DP IDs, Client IDs and ISIN codes are correct.
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Ensure both accounts are KYC compliant and valid.
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Follow the process for transfer status and keep the acknowledgement slips.
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Be careful with transfers between family; check the rules for gifting and taxes.
What Are The Tax Implications Of Share Transfers?
Transferring shares may have tax implications and costs associated with them, depending on the transfer's purpose and recipient. Here's what the Income Tax Act says and how you can remain compliant.
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Self-transfer: There is no tax on the self-transfer since the ownership is changing.
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Amounts above ₹50,000 may be taxed under the Income Tax Act, Section 56.
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A future sale of gifted shares will be taxed as per the original purchase date (including holding period).
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CGT on sale: STCG (up to 12 months) is taxed at 15%, LTCH (> 12 months) is taxed at 10% above the ₹1 Lakh exemption.
Conclusion
Transferring shares between demat accounts is a simple and inexpensive process, regardless of whether you are changing brokers, consolidating your portfolios or gifting your securities. You can either use the delivered instruction slip method, or online with traditional methods like CDSL Easiest and NSDL Speed-e. Always confirm the transfer details, keep a record of any exchanges, and remember to speak with tax advisors if it involves a transfer to another.
Step confidently into a powerful investment strategy now by learning how to Transfer Shares From One Demat account To Another.
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