How To Transfer Shares From One Demat Account To Another

If you are tired of paying high maintenance fees or you are just fed up with a glitchy trading app, moving your stocks to a new broker is the right move. Most people think their shares are stuck with the broker they signed up with years ago, but that is not how it works. Your shares actually sit with large central depositories like NSDL or CDSL. Your broker is just the middleman. Moving them is basically like moving money from one bank to another.

The Real Ways to Get It Done

You basically have two choices here. You can do it the old-school way with physical paperwork, or you can go through the digital route.

The Paper Route (DIS)

Every demat account comes with a booklet called a Delivery Instruction Slip (DIS). It looks and acts exactly like a chequebook. If you want to move your shares, you tear out a slip and fill it in. You will need to write down the name of the company, the ISIN (which is a unique ID for that stock), and how many shares you want to move.

The biggest headache here is your signature. If your signature on that slip looks even slightly different from the one you gave the broker five years ago, they will reject it. You have to be very precise. Once you fill it out, you mail it or drop it off at your broker’s office.

The Online Route (Easiest or SPEED-e)

If you do not want to deal with snail mail, you can use the depository portals. If your broker uses CDSL, you register for a service called Easiest. If it is NSDL, it is called SPEED-e.

You do not just log in and click send. First, you have to register and wait for your broker to approve your account. Then you have to add your new demat account as a trusted beneficiary. It takes a day or two for that to get approved. Once that is done, you can select your stocks and move them over. It is safer because it uses OTPs sent to your phone, so there is no worrying about signature matches.

What Is This Going to Cost?

Brokers are not exactly happy to see you leave, so they usually charge a fee. Most charge anywhere from 10 to 25 rupees per stock (per ISIN). So, if you have shares of 20 different companies, you might pay around 500 rupees to move the whole lot.

The good news is that the new broker usually does not charge you a penny to receive the shares. They want your business, so they make the entry easy.

Tax rules you should know

This is where people get confused. If you are moving shares from your own account to another account in your own name, you do not owe any tax. It is just a transfer, not a sale.

But if you are moving shares to your brother, your wife, or a friend, the tax department sees that as an off-market transaction.

• If it is a gift to a close family member, you are usually fine.

• If you are "selling" them to someone outside the stock exchange, you have to report it and pay capital gains tax.

Always keep a record of why you moved the shares, so you don’t get a random notice from the IT department three years later.

The Benefits of Moving

Most people do this because they realize they are overpaying. A lot of old-school full-service brokers charge a percentage of every trade. Newer discount brokers charge a flat fee or nothing at all for delivery. Over ten years, that difference can be worth lakhs of rupees.

Another reason is consolidation. It is a huge pain to check three different apps to see how your portfolio is doing. Moving everything into one place makes it much easier to track your dividends and manage your exits.

A Few Things That Can Go Wrong

Before you start, check these three things:

1. Locked-in Shares: If you have ELSS mutual funds or shares that are in a lock-in period, they cannot be moved until the time is up.

2. Pending Orders: If you have an active "sell" order on a stock, you cannot transfer it. Cancel the order first.

3. Unpaid Dues: If you owe your current broker money for AMC or previous trades, they will block the transfer until you clear the balance.

Final Thoughts

The process usually takes about three to five working days. Once it is done, you will get an SMS from the depository. Do not just take their word for it—log in to your new account and make sure the cost price of the shares is updated correctly. Sometimes when shares move, the new broker does not know what price you originally bought them at, and you have to enter that manually for tax tracking.

It is a bit of a chore, but once it is done, you will likely save a lot of money and frustration.

FAQs: How To Transfer Shares From One Demat Account To Another

1. How can I transfer shares from one demat account to another?

You can transfer shares online using CDSL Easiest or NSDL Speed-e, or offline by submitting a Delivery Instruction Slip (DIS) to your broker.

2. Can shares be transferred online between demat accounts?

Yes. If both demat accounts are registered on CDSL Easiest or NSDL Speed-e, shares can be transferred online without paperwork.

3. Is it possible to transfer shares between different brokers?

Yes. Shares can be transferred between demat accounts held with different brokers, provided both accounts belong to the same person or proper transfer details are submitted.

4. What is the difference between CDSL Easiest and NSDL Speed-e?

CDSL Easiest is used for CDSL demat accounts, while NSDL Speed-e is for NSDL accounts. Both platforms allow secure online share transfers.

5. How long does it take to transfer shares between demat accounts?

Online transfers usually take 1–2 working days, while offline DIS-based transfers may take 3–5 working days, depending on the broker.

6. Are there any charges for transferring shares?

Some brokers may charge ₹25–₹50 per ISIN for offline transfers. Online transfers are often free or low-cost, depending on the broker.

7. Is transferring shares from one demat account to another taxable?

No. Transfer of shares between demat accounts of the same person is not taxable, as it is not considered a sale.

8. Can I transfer shares from my demat account to a family member?

Yes, but it is treated as a gift or off-market transfer. Tax rules may apply to the recipient when shares are sold later.

9. What details are required for offline demat share transfer?

You need:

• Target demat account number
• DP ID & Client ID
• ISIN of shares
• Quantity to be transferred
• Signed Delivery Instruction Slip (DIS)

10. Can I transfer mutual fund units between demat accounts?

Yes. Demat-held mutual fund units can also be transferred using the same online or offline demat transfer process.

11. What is an off-market share transfer?

An off-market transfer is a transfer of shares outside the stock exchange, commonly used for demat account transfers, gifts, or internal restructuring.