A Demat account is essential for trading in stock market products like shares, bonds, and ETFs. It electronically holds your securities, making trading safe and seamless.
While it’s mandatory to have a Demat account to trade in the Indian stock market, you can maintain multiple Demat accounts across different brokers. However, each Demat account can only be accessed through its respective broker’s platform.
If you’re wondering how to transfer shares from one Demat account to another, this guide will walk you through the process step-by-step.
Why Do Investors Transfer Shares Between Demat Accounts?
There are several reasons why investors might transfer their shares:
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Consolidation: Managing all investments under a single account for better tracking.
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Lower Costs: Switching to a broker offering lower fees or better services.
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Portfolio Organization: Segregating investments based on asset class or investment goals.
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Better Trading Platforms: Moving to a broker offering superior trading tools and customer support.
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Dissatisfaction with Current Broker: Shifting after a poor service experience.
How to Transfer Shares from One Demat Account to Another
You can transfer your shares either online or offline. Here’s how:
Transfer Shares via Your Stockbroker (Offline)
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Request a Delivery Instruction Slip (DIS) from your current broker.
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Fill out the DIS carefully, mentioning:
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16-digit Broker ID
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12-digit ISIN (International Securities Identification Number) for each security
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Existing and new broker details
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Your signature(s)
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Submit the DIS to your current Depository Participant (DP).
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The DP forwards your request to the Central Depository (NSDL or CDSL) for verification and processing.
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After the transfer is successful, you can access your shares via the new broker’s platform.
Tip: Transfers are quicker when details are accurately filled. Double-check before submitting!
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Transfer Shares Online via Depository Portal
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Visit the NSDL or CDSL website.
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Register for the EASIEST facility (Electronic Access to Securities Information and Execution of Secured Transactions).
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Complete the online form and submit a signed printout to your current DP.
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Once approved, you can initiate share transfers online with ease.
Manual Transfer of Shares (Offline)
If you prefer manual submission:
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Fill in a physical DIS form as mentioned above.
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Ensure accuracy in:
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Broker IDs
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ISIN codes
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Names and signatures
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Submit the form to your existing broker, who will then initiate the transfer process.
Pro Tip: Know Your Demat Account Number Format
Before initiating a share transfer, it’s crucial to correctly identify your Demat account number format:
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CDSL Demat Account:
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16-digit purely numeric code.
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Example:
0143876589104321
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NSDL Demat Account:
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14-digit code starting with ‘IN’, followed by 12 numbers.
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Example:
IN01234567891044
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Make sure you enter the correct Demat number while filling the Delivery Instruction Slip (DIS) to avoid transfer failures.
If you are looking for the best stockbroker I would recommend you to checkout this broker, or you can directly use the below link to open the account free of cost.
Difference Between CDSL and NSDL Demat Accounts
In India, there are two main depositories that manage Demat accounts: CDSL (Central Depository Services Limited) and NSDL (National Securities Depository Limited).
Here’s how they differ:
Feature |
CDSL |
NSDL |
|---|---|---|
Established In |
1999 |
1996 |
Promoted By |
Bombay Stock Exchange (BSE) |
National Stock Exchange (NSE) |
Demat Account Number Format |
16-digit numeric code (e.g., 0143876589104321) |
14-character code starting with ‘IN’ (e.g., IN01234567891044) |
Website |
Key takeaway: Both CDSL and NSDL offer similar services. The choice depends mainly on which depository your broker is associated with.
Important Clarifications for Share Transfers:
Before you initiate a transfer, keep these important points in mind:
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Transfer Allowed Between Individual Accounts Only
Transfers can only happen between accounts of the same ownership type — for example, individual to individual or joint to joint. Transfers across different account types are not permitted. -
Brokerage Charges May Apply
Some brokers charge a nominal fee per security (per company) when you transfer shares out of their platform. It’s advisable to check with your broker beforehand and ensure you maintain sufficient balance in your ledger account to avoid transaction failures. -
Cost Price Will Not Update Automatically
After the shares are transferred, your cost of acquisition (buying price) will not automatically reflect in the new account.Stay tuned: We will be posting a detailed guide next week on how to update the cost price in your new Demat account manually!
If you are looking for the best stockbroker I would recommend you to checkout this broker, or you can directly use the below link to open the account free of cost.
Final Thoughts:
Transferring shares between Demat accounts is straightforward once you understand the process. Whether you’re switching brokers for better service, consolidating your holdings, or simply organizing your portfolio, following the correct steps will ensure a smooth transition.
- Always verify your account details and ISIN codes carefully to avoid errors.
- Consult your broker for specific charges or requirements before initiating a transfer.
If you are a beginner it is important for you to know the basics of stock market check this ultimate guide which can help you to get started.
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