How to Transfer Shares from One Demat Account to Another?

Steps to Transfer Shares Online from One Demat Account to Another

You can easily transfer shares online from one demat account to another using either the CDSL (Central Depository Services Limited) or NSDL (National Securities Depository Limited) platforms. Here is how to transfer shares from one demat account to another:

NSDL to CDSL Online Transfer

Step 1: Register in the e-SERVICES portal under the SPEED-e option.

Step 2: Select the ‘Smart Card’ option to transfer shares. Download and fill the SPEED-e application form, Power of Attorney or obtain it directly from your Depository Portal (DP).

Step 3: Submit the filled-out form with the required documents to your DP.

Step 4: DP will verify the details

Step 5: A user ID will be assigned to obtain a Smart Card kit, Digital Signature Certificate (DSC) and a Personal Identification Number (PIN).

Step 6: Install the Smart Card, DSC and PIN with the user-ID provided.

Step 7: Transfer the securities to the desired beneficiary using the inter-depository module.

Note: The inter-depository share transfer method is complicated, and charges and fees can be expensive if you are transferring shares from NSDL to CDSL.

CDSL to CDSL Online Transfer

Step 1: Register in the EASIEST portal and log in.

Step 2: Click on the ‘Transaction’ tab and select ‘Setup’.

Step 3: Click on the ‘Bulk Setup’ option, and you will get the transaction screen.

Step 4: Enter the transaction and securities details and click ‘Verify’.

Step 5: Now select the ‘All’ option in the ‘Status’ bar and tap on ‘Commit’. 

Step 6: Enter the PIN and click ‘OK’ to complete the process. 

Notes:

• It takes 1 to 2 days to verify the information provided during CDSL registration, after which you will receive an email with the PIN and password. 
• Change the PIN from the 'Miscellaneous' tab after logging in to the portal. 

CDSL to NSDL Online Transfer

Step 1: Go to the EASIEST portal to register as a new user

Step 2: Enter the CDSL BOP ID (demat account number)

Step 3: Set up the trust account from the ‘Transaction’ option and click on the ‘BO Linking Setup’

Step 4: Enter the 16-digit target BO ID from your NSDL account and your PAN. 

Step 5: Authenticate via the link sent to your email from CDSL. 

Step 6: Select Transaction, then Setup and lastly Bulk Setup one after the other. 

Step 7: Enter the securities details and complete the transfer with an OTP and Digital Signature. 

Note: Understanding how to transfer shares from CDSL to NSDL online is easy, but the actual process can be complicated. However, CDSL charges no fees if you transfer shares to yourself from CDSL to NSDL.

Ready to simplify your investing journey? Open a demat account with 5paisa and enjoy seamless share transfers, competitive brokerage plans, and a user-friendly investing platform.

How to Transfer Shares Manually via Delivery Instruction Slip (DIS)?

Transferring shares offline, using a DIS, is comparatively easier than if you want to transfer shares from one demat to another online. Simply follow the offline method steps below to understand how to transfer shares from one demat account to another:

Step 1: Inform your broker about the demat account transfer and obtain an inter-depository DIS.

Step 2: Fill in the following details in the DIS:

• Date
• Client ID
• Receiver Details (For Off-Market)
• Receiver Details (For Market Trades)
• Securities Details

Step 3: Sign the DIS

Step 4: Submit the DIS directly to your DP

Notes:

• Only 4 International Securities Identification Numbers (ISINs) can be transferred per DIS. Use multiple DIS if you wish to transfer more than 4 ISINs. 
• The account holder’s signature has to match the signature recorded in the demat account.
   

SEBI Guidelines on Demat Account Transfer

Knowing what are the SEBI guidelines for share transfer can be beneficial to avoid suspension of trading, monetary penalties, potential legal prosecution, and freezing of assets. Here are the different SEBI guidelines on demat account transfer between or within depositories:

• Exact Ownership Patterns: Securities ownership patterns must match whether you are gifting shares off-market or changing to a new broker.
• Account Credibility: Transferring securities between demat accounts must be fully authorised, traceable, and secure. 
• Submission of Documents: An account closure form and Client Master List (CML) of your target demat account need to be submitted to your DP. 

Case Example:

When Rahul switches his brokerage firm, he has to change his demat account. He ensures that both accounts are in his name, completes the account closure form and gives his Depository Participant (DP) the Client Master List (CML) of the new account. 
This is done in compliance with the requirements set by the Securities and Exchange Board of India (SEBI). Shares are transferred smoothly, with no delays or penalties, and the ownership details are matched, as the transfer is fully authorised.
 

Final Words

Knowing how to transfer shares from one demat account to another can be beneficial for investors for various reasons. Shares can be transferred online via word of mouth, through the CDSL/NSDL depository, or offline via a Delivery Instruction Slip (DIS).

Though it is convenient to transfer online, those who do it manually also find it easy. Following the correct procedures and SEBI guidelines, including ownership verification and document submission, can ensure a smooth and compliant transfer process.

Looking for a smoother investing experience? Consider opening a demat account with 5paisa.