How to Transfer Shares from One Demat Account to Another: Step-by-Step Guide

Why Would You Need to Transfer Shares Between Demat Accounts?

Investors often transfer shares between Demat accounts for several reasons. The most common is switching brokers to access better trading platforms, lower fees, or improved customer service. For example, if your current broker charges high EMI rates on margin trading or lacks advanced tools, transferring your holdings to a new broker can be beneficial.

Another reason is consolidating multiple Demat accounts. Many investors open separate accounts for different purposes—trading, long-term investing, or SIP investments. Over time, managing multiple accounts becomes cumbersome. Transferring shares to a single Demat account simplifies portfolio tracking and reduces paperwork.

You may also need to transfer shares if you’re changing your depository participant (DP). For instance, if your current DP is shutting down or has poor service, moving your holdings to a more reliable DP ensures seamless access to your investments.

Types of Demat Account Transfers: Off-Market vs. Inter-Segment

There are two primary ways to transfer shares between Demat accounts: off-market transfer and inter-segment transfer. Each serves a different purpose, and choosing the right one depends on your goal.

Off-Market Transfer (DIS)

An off-market transfer is used when you want to move shares from one Demat account to another without selling them. This is ideal for switching brokers or consolidating accounts. The process involves submitting a Delivery Instruction Slip (DIS) to your current DP, who then facilitates the transfer to the target Demat account.

Key features of off-market transfers:

• No need to sell shares; ownership is directly transferred.
• Free of charge (though some DPs may charge a nominal fee).
• Takes 1–3 business days to complete.
• Requires the consent of both the sending and receiving DPs.

Inter-Segment Transfer

An inter-segment transfer is used when you want to move shares from one segment of your Demat account to another, such as from the equity segment to the commodity segment. This is less common for investors switching brokers but may be relevant if you’re diversifying into different asset classes.

Key features of inter-segment transfers:

• Applicable only within the same Demat account.
• Used for transferring shares between different segments (e.g., equity to commodity).
• No sale is involved; ownership remains with you.
• Typically takes 1–2 business days.

Step-by-Step Guide: How to Transfer Shares Using Off-Market Transfer (DIS)

Transferring shares via an off-market transfer is straightforward but requires attention to detail. Follow these steps to ensure a smooth process.

Step 1: Gather Required Details

Before initiating the transfer, collect the following information:

• Target Demat Account Number (DP ID + Client ID): This is the 16-digit number provided by your new broker. It typically looks like 1234567890123456.
• ISIN of the Shares: The International Securities Identification Number (ISIN) uniquely identifies each stock. For example, Reliance Industries Ltd. has the ISIN INE018A01026. You can find the ISIN on your Demat account statement or the broker’s platform.
• Quantity of Shares: The exact number of shares you want to transfer. Ensure you have enough holdings to cover the transfer.
• Purpose of Transfer: Mention whether it’s for broker switching, consolidation, or any other reason.

Step 2: Obtain a Delivery Instruction Slip (DIS) from Your Current DP

Your current Depository Participant (DP) will provide you with a DIS form. This can be a physical slip or an online form, depending on your DP’s services. If you’re using an online platform, you may need to generate the DIS digitally.

Key details to fill in the DIS:

• Your Client ID: Your existing Demat account number.
• Target Client ID: The Demat account number of the recipient.
• ISIN: The unique identifier for the shares.
• Quantity: The number of shares to transfer.
• Transaction Type: Select “Off-Market Transfer” or “Inter-Segment Transfer.”
• Signature: Your signature must match the records with your DP.

Step 3: Submit the DIS to Your Current DP

Once the DIS is filled out, submit it to your current DP. If you’re using a physical slip, hand it over at the branch or mail it to the DP’s registered office. For online submissions, upload the form through the DP’s portal or mobile app.

Some DPs may require additional verification, such as an OTP sent to your registered mobile number or email. Ensure you complete all verification steps to avoid delays.

Step 4: Wait for Confirmation from Both DPs

After submitting the DIS, your current DP will forward the request to the target DP. Both DPs will verify the details and process the transfer. This typically takes 1–3 business days, depending on the efficiency of the DPs involved.

You’ll receive a confirmation email or SMS once the transfer is complete. Check your new Demat account to ensure the shares reflect correctly.

Step 5: Verify the Transfer in Your New Demat Account

Log in to your new Demat account and check the holdings section. The transferred shares should appear with the correct ISIN and quantity. If there’s a discrepancy, contact both DPs immediately to resolve the issue.

How to Transfer Shares Online via CDSL or NSDL

If your Depository Participant (DP) supports online transfers, you can use the CDSL Easiest or NSDL SPEED-e platforms to transfer shares electronically. This method is faster and more convenient than physical DIS forms.

Transferring Shares via CDSL Easiest

CDSL (Central Depository Services Limited) is India’s largest depository, holding over ₹500 lakh crore in assets as of April 2026. Here’s how to transfer shares using CDSL Easiest:

Step 1: Register for CDSL Easiest

Visit the CDSL website and register for Easiest. You’ll need your Client ID and a registered mobile number/email for OTP verification.

Step 2: Log In and Initiate Transfer

Once registered, log in to the Easiest portal. Navigate to the “Off-Market Transfer” section and select “Create Request.” Fill in the following details:

• Target Client ID: The Demat account number of the recipient.
• ISIN: The unique identifier for the shares.
• Quantity: The number of shares to transfer.
• Purpose: Select the reason for transfer (e.g., broker switching).

Step 3: Submit and Verify

After submitting the request, you’ll receive an OTP on your registered mobile number. Enter the OTP to confirm the transfer. The request will be sent to the target DP for approval.

Once approved, the shares will reflect in your new Demat account within 1–2 business days.

Transferring Shares via NSDL SPEED-e

NSDL (National Securities Depository Limited) is another major depository in India. Here’s how to transfer shares using NSDL SPEED-e:

Step 1: Register for SPEED-e

Visit the NSDL website and register for SPEED-e. You’ll need your Client ID and a registered mobile number/email for verification.

Step 2: Log In and Initiate Transfer

Log in to the SPEED-e portal and navigate to the “Off-Market Transfer” section. Fill in the following details:

• Target Client ID: The Demat account number of the recipient.
• ISIN: The unique identifier for the shares.
• Quantity: The number of shares to transfer.
• Purpose: Select the reason for transfer.

Step 3: Submit and Verify

Submit the request and verify it using an OTP sent to your registered mobile number. The target DP will approve the request, and the shares will be transferred within 1–2 business days.

Charges and Fees for Demat Account Transfers

Transferring shares between Demat accounts is generally free, but there are exceptions. Here’s a breakdown of potential costs:

As of April 2026, most DPs do not charge for off-market transfers, but it’s best to confirm with your current and target DPs. For example, Zerodha charges ₹0 for off-market transfers, while ICICI Direct may charge ₹25 per ISIN for online transfers.

Common Mistakes to Avoid When Transferring Shares

Transferring shares between Demat accounts is a straightforward process, but mistakes can lead to delays or lost shares. Here are the most common errors to avoid:

1. Incorrect Client ID or ISIN

The most frequent mistake is entering the wrong Client ID or ISIN. A single-digit error can send shares to the wrong account. Always double-check these details before submitting the DIS.

For example, if your target Client ID is 1234567800123456, entering 1234567800123457 will result in a failed transfer. Similarly, using the wrong ISIN (e.g., INE018A01025 instead of INE018A01026 for Reliance Industries) can cause issues.

2. Insufficient Shares in the Demat Account

Ensure you have enough shares in your Demat account to cover the transfer. If you attempt to transfer more shares than you own, the request will be rejected, and you’ll need to resubmit the DIS.

For example, if you have 100 shares of Tata Motors (ISIN: INE151A01022) and try to transfer 150 shares, the transfer will fail. Always verify your holdings before initiating the process.

3. Not Updating Bank Details

If you’re transferring shares to a new broker, ensure your bank account details are updated in the new Demat account. This is crucial for receiving dividends, bonuses, or selling shares in the future.

Most brokers require you to link your bank account to your Demat account. If your bank details are outdated, you may face issues receiving payouts.

4. Ignoring Tax Implications

Transferring shares between Demat accounts is not a taxable event, but selling shares after the transfer may trigger capital gains tax. For example, if you sell shares within 12 months of purchase, you’ll owe short-term capital gains tax at 15%.

Consult a CA or tax advisor to understand the implications based on your holding period and income slab.

5. Not Verifying the Transfer Status

After submitting the DIS, many investors forget to track the transfer status. Always follow up with both DPs to ensure the transfer is processed smoothly.

If the transfer is delayed beyond 3 business days, contact your current DP and request an update. Delays can occur due to mismatched signatures, incorrect details, or internal processing issues.

Tax Implications of Transferring Shares Between Demat Accounts

Transferring shares between Demat accounts is a non-taxable event, but selling shares after the transfer may have tax implications. Here’s what you need to know:

No Tax on Off-Market Transfers

Off-market transfers are not considered sales, so they do not trigger capital gains tax. The cost basis (purchase price) and holding period remain unchanged in the new Demat account.

For example, if you bought 100 shares of HDFC Bank at ₹1,500 each in 2023 and transfer them to a new Demat account in 2026, the cost basis remains ₹1,500 per share. If you sell them later at ₹2,000, you’ll owe tax on the ₹500 profit.

Capital Gains Tax on Subsequent Sales

If you sell shares after transferring them, the tax liability depends on your holding period:

• Short-Term Capital Gains (STCG): If you sell shares held for less than 12 months, the profit is taxed at 15% (plus applicable surcharge and cess).
• Long-Term Capital Gains (LTCG): If you sell shares held for more than 12 months, the profit above ₹1 lakh is taxed at 10% (plus applicable surcharge and cess).

For example, if you transfer shares bought at ₹1,000 and sell them at ₹1,500 after 6 months, you’ll owe 15% tax on the ₹500 profit. If you sell after 18 months at ₹2,000, you’ll owe 10% tax on the profit above ₹1 lakh.

Stamp Duty on Transfers (If Applicable)

Stamp duty is not applicable for off-market transfers. However, if you sell shares and repurchase them in a different Demat account, stamp duty may apply at 0.015% of the transaction value.

For example, if you sell 100 shares of Infosys at ₹1,800 each, the stamp duty would be 0.015% of ₹1,80,000 = ₹27.

Dividend Taxation

Dividends received from shares are taxable as per your income tax slab. The company deducts a 10% TDS if the dividend exceeds ₹5,000 in a financial year. The remaining amount is added to your taxable income.

For example, if you receive ₹10,000 in dividends, ₹1,000 (10%) will be deducted as TDS, and the remaining ₹9,000 will be taxed according to your slab rate.

How Long Does a Demat Account Transfer Take?

The time taken to transfer shares between Demat accounts depends on the method used and the efficiency of the DPs involved. Here’s a breakdown of the typical timelines:

As of April 2026, most transfers are completed within 2 business days if all details are correct. However, delays can occur due to:

• Incorrect client ID or ISIN: The transfer will be rejected, requiring resubmission.
• Signature mismatch: If your signature on the DIS doesn’t match the DP’s records, the transfer will be delayed.
• DP processing delays: Some DPs take longer to approve transfers, especially during peak periods.
• Bank holidays or weekends: Transfers initiated on non-working days will be processed on the next business day.

Can You Transfer Shares from One Broker to Another Without Selling?

Yes, you can transfer shares from one broker to another without selling them. This is done through an off-market transfer or inter-segment transfer, depending on your needs. Here’s how it works:

Off-Market Transfer (Most Common Method)

An off-market transfer allows you to move shares directly from your old broker’s Demat account to the new broker’s Demat account. This is ideal for investors switching brokers to access better services or lower fees.

Key points:

• No sale is involved; ownership is directly transferred.
• You retain the original cost basis and holding period.
• No capital gains tax is triggered.
• Typically takes 1–3 business days.

Inter-Segment Transfer (For Same Broker)

If you want to move shares from one segment to another within the same broker’s Demat account (e.g., from equity to commodity), you can use an inter-segment transfer. This is less common for broker switching but may be relevant for diversification.

Steps to Transfer Without Selling

1. Open a Demat account with your new broker if you don’t already have one.
2. Obtain the target Client ID from your new broker (16-digit Demat account number).
3. Fill out a DIS form with the correct details (Client ID, ISIN, quantity).
4. Submit the DIS to your current broker’s DP.
5. Wait for confirmation from both DPs and verify the transfer in your new account.

How to Check the Status of Your Demat Transfer

Tracking the status of your Demat transfer ensures it’s processed smoothly. Here’s how to check the status based on the method used:

Checking Status for Physical DIS Submission

If you submitted a physical DIS form, follow these steps:

1. Contact your current DP: Call their customer service or visit the branch to inquire about the transfer status.
2. Check your email/SMS: Most DPs send status updates via email or SMS. Look for notifications from your DP.
3. Log in to your new Demat account: After 1–2 days, log in to your new account to see if the shares have been credited.

Checking Status for Online Transfers (CDSL/NSDL)

If you used CDSL Easiest or NSDL SPEED-e, check the status online:

• CDSL Easiest: Log in to the portal, go to “Transaction Status,” and enter your request ID.
• NSDL SPEED-e: Log in to the portal, navigate to “Track Request,” and enter the request details.

You can also call the CDSL helpline at 022-4070 1000 or NSDL helpline at 022-4090 4444 for assistance.

What to Do If the Transfer Is Delayed

If the transfer is delayed beyond 3 business days, take these steps:

1. Contact your current DP: Ask them to escalate the request or check for errors in the DIS.
2. Contact your new DP: They can follow up with your old DP to resolve the delay.
3. Verify details: Ensure the Client ID, ISIN, and quantity are correct. A small error can cause delays.
4. Check for holidays: If the delay coincides with a bank holiday or weekend, the transfer may resume on the next business day.

Transferring Shares to a Family Member or Nominee

You can transfer shares to a family member or nominee using an off-market transfer. This is useful for estate planning or gifting shares to loved ones. Here’s how to do it:

Steps to Transfer Shares to a Family Member

1. Obtain the recipient’s Demat account details: Ask them for their Client ID (16-digit Demat account number).
2. Fill out a DIS form: Include the recipient’s Client ID, ISIN, and quantity of shares.
3. Submit the DIS to your DP: Hand it over at the branch or submit it online.
4. Pay applicable charges: Some DPs may charge a small fee for transfers to family members.
5. Verify the transfer: Check the recipient’s Demat account to ensure the shares are credited.

Tax Implications for Gifting Shares

Transferring shares to a family member is considered a gift, and there are tax implications to consider:

• Gift Tax: Gifts exceeding ₹50,000 in a financial year are taxable in the recipient’s hands. For example, if you gift shares worth ₹1 lakh, the recipient will owe tax on ₹50,000 (₹1 lakh - ₹50,000 exemption).
• Capital Gains Tax: The recipient inherits your cost basis. If they sell the shares later, they’ll owe tax based on your original purchase price.
• Stamp Duty: Not applicable for off-market transfers to family members.

For example, if you bought shares at ₹1,000 and gift them to your child when they’re worth ₹2,000, your child’s cost basis remains ₹1,000. If they sell them at ₹2,500, they’ll owe tax on ₹1,500 (₹2,500 - ₹1,000).

Transferring Shares to a Nominee

If you want to transfer shares to a nominee in case of your demise, you can do so by updating the nominee details in your Demat account. Most DPs allow you to add up to 3 nominees and specify the percentage of shares each should receive.

Steps to add a nominee:

1. Log in to your Demat account and navigate to the nominee section.
2. Fill in the nominee’s details: Name, relationship, and percentage of shares.
3. Submit the form to your DP with the required documents (ID proof, address proof).
4. Verify the nominee: The DP will process the request, and the nominee will be updated in your account.

Transferring Shares from Zerodha to Another Broker: A Case Study

Zerodha is one of India’s largest discount brokers, known for its low fees and user-friendly platform. If you’re transferring shares from Zerodha to another broker, here’s a step-by-step guide:

Step 1: Open a Demat Account with the New Broker

Before initiating the transfer, open a Demat account with your new broker. Ensure they support off-market transfers and have a good reputation for customer service.

Step 2: Obtain Your New Client ID

Your new broker will provide you with a 16-digit Client ID. This is essential for the transfer. For example, if your new Client ID is 1234567890123456, note it down carefully.

Step 3: Generate a DIS from Zerodha

Zerodha allows you to generate a DIS online through its console. Here’s how:

1. Log in to Zerodha Console (console.zerodha.com).
2. Go to “Demat” > “Off-Market Transfer.”
3. Enter the target Client ID and other details (ISIN, quantity).
4. Submit the request and verify it using an OTP.

Step 4: Submit the DIS to Zerodha

If you prefer a physical DIS, you can download it from the Zerodha portal, fill it out, and submit it at a Zerodha branch or via courier. Ensure your signature matches the records with Zerodha.

Step 5: Wait for Confirmation

Zerodha typically processes off-market transfers within 1–2 business days. You’ll receive a confirmation email once the transfer is complete. Check your new Demat account to verify the shares.

Step 6: Close Your Zerodha Demat Account (Optional)

If you no longer need your Zerodha Demat account, you can close it after transferring all shares. Zerodha charges a ₹50 closure fee if the account is closed within the first year. After that, closure is free.

Warning

If you’re transferring shares from Zerodha to another broker, ensure you’ve settled all outstanding dues (e.g., margin penalties, AMC fees). Zerodha may block your Demat account if there are pending dues, preventing the transfer.

Transferring Shares from Upstox to Another Broker: A Case Study

Upstox is another popular discount broker in India. If you’re transferring shares from Upstox to another broker, follow these steps:

Step 1: Open a Demat Account with the New Broker

Choose a new broker that meets your needs (e.g., lower fees, better platform). Ensure they support off-market transfers.

Step 2: Obtain Your New Client ID

Your new broker will provide you with a 16-digit Client ID. Double-check the number to avoid errors.

Step 3: Generate a DIS from Upstox

Upstox allows you to generate a DIS online:

1. Log in to Upstox Pro (pro.upstox.com).
2. Go to “Demat” > “Off-Market Transfer.”
3. Enter the target Client ID, ISIN, and quantity.
4. Submit the request and verify it using an OTP.

Step 4: Submit the DIS to Upstox

If you’re using a physical DIS, download it from the Upstox portal, fill it out, and submit it at an Upstox branch or via courier. Ensure your signature matches the records.

Step 5: Wait for Confirmation

Upstox typically processes off-market transfers within 1–2 business days. You’ll receive a confirmation email once the transfer is complete. Verify the shares in your new Demat account.

Step 6: Close Your Upstox Demat Account (Optional)

If you no longer need your Upstox Demat account, you can close it after transferring all shares. Upstox charges a ₹30 closure fee if the account is closed within the first year.

Pro Tip

If you’re transferring shares from Upstox to another broker, check if your new broker offers free AMC for the first year. Some brokers waive fees to attract new customers. Also, compare brokerage rates to ensure you’re saving money.

Transferring Shares from ICICI Direct to Another Broker: A Case Study

ICICI Direct is a full-service broker with higher fees but advanced research tools. If you’re transferring shares from ICICI Direct to another broker, here’s how to do it:

Step 1: Open a Demat Account with the New Broker

Choose a new broker that offers lower fees or better services. Ensure they support off-market transfers.

Step 2: Obtain Your New Client ID

Your new broker will provide you with a 16-digit Client ID. Write it down carefully to avoid errors.

Step 3: Generate a DIS from ICICI Direct

ICICI Direct allows you to generate a DIS online:

1. Log in to ICICI Direct (www.icicidirect.com).
2. Go to “Demat” > “Off-Market Transfer.”
3. Enter the target Client ID, ISIN, and quantity.
4. Submit the request and verify it using an OTP.

Step 4: Submit the DIS to ICICI Direct

If you prefer a physical DIS, you can download it from the ICICI Direct portal, fill it out, and submit it at an ICICI Direct branch or via courier. Ensure your signature matches the records.

Step 5: Wait for Confirmation

ICICI Direct typically processes off-market transfers within 2–3 business days. You’ll receive a confirmation email once the transfer is complete. Verify the shares in your new Demat account.

Step 6: Close Your ICICI Direct Demat Account

ICICI Direct charges a ₹300 closure fee for Demat accounts. If you’ve held the account for less than a year, the fee is higher. After closing, ensure all outstanding dues are settled.

Warning

If you’re transferring shares from ICICI Direct, check for hidden charges such as AMC fees, transaction charges, or penalties for early closure. ICICI Direct’s fees are higher than discount brokers, so switching may save you money in the long run.

Transferring Shares from Angel One to Another Broker: A Case Study

Angel One is a full-service broker with a strong presence in India. If you’re transferring shares from Angel One to another broker, follow these steps:

Step 1: Open a Demat Account with the New Broker

Choose a new broker that offers better services or lower fees. Ensure they support off-market transfers.

Step 2: Obtain Your New Client ID

Your new broker will provide you with a 16-digit Client ID. Double-check the number to avoid errors.

Step 3: Generate a DIS from Angel One

Angel One allows you to generate a DIS online:

1. Log in to Angel One (www.angelone.in).
2. Go to “Demat” > “Off-Market Transfer.”
3. Enter the target Client ID, ISIN, and quantity.
4. Submit the request and verify it using an OTP.

Step 4: Submit the DIS to Angel One

If you’re using a physical DIS, download it from the Angel One portal, fill it out, and submit it at an Angel One branch or via courier. Ensure your signature matches the records.

Step 5: Wait for Confirmation

Angel One typically processes off-market transfers within 1–2 business days. You’ll receive a confirmation email once the transfer is complete. Verify the shares in your new Demat account.

Step 6: Close Your Angel One Demat Account

Angel One charges a ₹200 closure fee if the account is closed within the first year. After that, closure is free. Ensure all outstanding dues are settled before closing.

Pro Tip

If you’re transferring shares from Angel One, check if your new broker offers free research reports or advanced trading tools. Full-service brokers like Angel One provide in-depth research, which may be valuable if you’re a long-term investor.

Transferring Shares from Groww to Another Broker: A Case Study

Groww is a popular investment platform for beginners, known for its simplicity and low fees. If you’re transferring shares from Groww to another broker, here’s how to do it:

Step 1: Open a Demat Account with the New Broker

Choose a new broker that offers better services or lower fees. Ensure they support off-market transfers.

Step 2: Obtain Your New Client ID

Your new broker will provide you with a 16-digit Client ID. Write it down carefully to avoid errors.

Step 3: Generate a DIS from Groww

Groww allows you to generate a DIS online:

1. Log in to Groww (groww.in).
2. Go to “Portfolio” > “Demat” > “Off-Market Transfer.”
3. Enter the target Client ID, ISIN, and quantity.
4. Submit the request and verify it using an OTP.

Step 4: Submit the DIS to Groww

If you prefer a physical DIS, you can download it from the Groww portal, fill it out, and submit it at a Groww branch or via courier. Ensure your signature matches the records.

Step 5: Wait for Confirmation

Groww typically processes off-market transfers within 1–2 business days. You’ll receive a confirmation email once the transfer is complete. Verify the shares in your new Demat account.

Step 6: Close Your Groww Demat Account

Groww does not charge a closure fee for Demat accounts. However, ensure all outstanding dues are settled before closing.

Warning

If you’re transferring shares from Groww, check if your new broker supports mutual fund investments or IPO applications. Groww is primarily an investment platform, so switching brokers may limit your investment options.

Frequently Asked Questions

Frequently Asked Questions

Can I transfer shares from one Demat account to another without selling?

Yes, you can transfer shares between Demat accounts without selling them using an off-market transfer or inter-segment transfer. This is ideal for switching brokers or consolidating accounts. The process is free or low-cost and does not trigger capital gains tax.

How long does it take to transfer shares from one Demat account to another?

Transferring shares typically takes 1–3 business days, depending on the method used. Physical DIS submissions may take longer due to processing delays, while online transfers via CDSL or NSDL are usually faster (1–2 days).

Are there any charges for transferring shares between Demat accounts?

Most DPs do not charge for off-market transfers, but some may levy a small fee (₹10–₹50 per ISIN) for online transfers. Physical DIS submissions are usually free. Always confirm the fee structure with your current and target DPs.

What happens if I enter the wrong Client ID or ISIN while transferring shares?

Entering incorrect details can result in the transfer being rejected or shares being sent to the wrong account. Always double-check the Client ID and ISIN before submitting the DIS. If an error occurs, you’ll need to resubmit the request with the correct details.

Do I need to pay tax when transferring shares between Demat accounts?

No, off-market transfers are not taxable events. However, selling shares after the transfer may trigger capital gains tax based on your holding period. Consult a tax advisor to understand the implications for your specific situation.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Rates and offers are subject to change. Please consult a SEBI-registered advisor before making investment decisions. InvestingPro.in may earn a commission when you apply through our links.