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How To Transfer Shares From One Demat To Another

Are you looking to transfer your shares from one Demat account to another but don’t want the hassle of visiting your broker’s office or filling out lengthy paperwork? Well, good news! With the advancement of technology, now transferring shares online can be done from the comfort of your couch. 

Yes, you heard it right. Instead, online transfer of shares is quick, convenient, and saves you time. Hence, if you’re curious to learn how to do online transfer of shares, buckle up and let’s get started!

transfer shares

What is a Transfer of Shares?

Transfer of shares involves the movement of shares between two Demat accounts. A Demat account is a class of electronic funds that maintain shares and securities in a dematerialized form, eliminating the need for physical share certificates. When shares are moved from one Demat account to another, the ownership of those shares is effectively transferred from one person or entity to another.

Transferring shares typically involves procedures and documentation, which may vary depending on the type of shares being transferred and the rules and regulations governing the transfer process.

Suppose you have multiple Demat accounts and wish to transfer from a single Demat account to another account. Unfortunately, transferring shares from one Demat account to another can be daunting. However, it has become significantly more accessible with the advent of online trading and demat accounts. This blog section will educate you about the steps in transferring shares from a single Demat account to another, manually or online.

Manual/Offline Transfer of Shares

Certain specifications must be considered when a manual transfer of shares is done from one Demat account to another. Firstly, it is essential to understand that the transferred shares are maintained and held in depository systems – CDSL or NSDL. The ownership of these shares is registered with either of these central depositories.

The transfer mode of shares depends on the depository with which your broker is associated. If the existing and new brokers are associated with the same repository, then an intra-depository transfer (or an off-market transfer) of shares will occur. However, if the existing brokers are associated with various depositories, there will be an inter-depository transfer of shares.

When an intra-depository transfer or off-market transfer is done, the account owner must use a Debit Instruction Slip or a DIS booklet provided by their Depository Participant (DP).

Below mentioned steps to be followed up:

Step 1: Add the names of the shares that need to be transferred. Additionally, the ISIN number needs to be recorded as well. Therefore, it is crucial to write down the accurate ISIN number, as the transactions will be processed on this basis.

Step 2: The target client ID must be recorded for the next step. It is a 16-character code which comprises the client’s ID and the DP ID, i.e. the new Demat account.

Step 3: This step involves selecting the transfer method. When the mode of transfer is an intra-depository or an off-market transfer, the column named ‘off-market transfer’ must be set. Likewise, the ‘inter-depository’ column should be selected if the transfer method is inter-depository.

Once the DIS slip has been filled in, a few final steps are to be followed:

Step 4: The signed and filled DIS slip will be submitted to the account holder’s existing broker or DP, and the acknowledgement receipt must be collected from them.

It takes 3-5 business days for the broker to transfer the shares from an old Demat account and for the new broker to acquire the shares in the new report. The current broker may apply a few charges for this procedure, and the rates vary from one broker to another.

For an online transfer of shares through CDSL, the account holder should first register themselves on the CDSL website.

Follow the below-mentioned steps thoroughly

Step 1: Access the CDSL website ( and click the ‘Register Online link. Next, select the ‘EASIEST’ option. (EASIEST stands for Electronic Access to Securities Information and Execution of Secured Transaction)

Step 2: Fill in the registration form with the necessary details, including your DP ID (the ID of your broker), as well as the BO ID (Beneficial Owner, which is the demat account holder), email, phone number, etc. You will receive a one-time password (OTP) on your registered mobile number. Enter the OTP in the box provided. When your mobile number is verified, your registration will be completed within 24-48 hours, and online transfer of shares can be done.

Step 3: Select the ‘Print Form’ option after filling in the form. Please print the form and submit it to your DP.

Step 4: Once your DP verifies the form, they will send a password to your registered email id.

Step 5: Use the provided password to log in to your account and transfer the required shares.

Tax implications of transferring shares

When a Transfer of shares from one Demat account to another can have tax implications, specifically capital gains tax. Capital gains tax is applied on the profit earned from selling any asset, for example, shares.

Transferring shares from one Demat account to another without selling them will not incur any capital gains tax. However, you will be liable for capital gains tax when you sell the shares before transferring them.

The tax implication of transferring shares also depends on the period the shares were held before the transfer. If the stakes were for less than a year, they are considered short-term capital assets, and the capital gains tax is calculated per the applicable income tax slab rate. On the other hand, if the shares were held for more than a year, the capital gains tax is about 20%.

Talking with a tax expert before transferring shares is vital to ensure that you know the tax implications and any exemptions that may apply.


In conclusion, the online transfer of shares has become much more straightforward and efficient with the advent of platforms like CDSL EASIEST. Registering on the CDSL website and submitting the required form to the DP allows account holders to quickly and easily transfer shares between demat accounts without physical share certificates. This process benefits those with multiple demat accounts or looking to move shares from one demat to another.Before online transfer of shares, one must consider the tax implications, including the capital gain tax that may be applicable. Additionally, different depositories, such as CDSL or NSDL, follow slightly different procedures for online transfers, including intra-depository and inter-depository transfers. Therefore, it is also essential to know your DP ID and target client ID when initiating such transfers, especially when dealing with a discount broker.

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