How to easily transfer shares between Demat accounts

1. Online Transfer (CDSL or NSDL Platforms)

If both your old and new demat accounts are with depository participants under CDSL or NSDL, the online transfer process is quick and convenient. You’ll need access to the respective depository’s online platform.

Steps for CDSL Online Transfer (Easiest if both accounts are under CDSL):

Login to CDSL’s Easiest Portal:

Go to the CDSL Easiest portal and log in with your credentials.

Add Trusted Account:

If you are transferring shares to your own account or a family member's account, you can add the receiving account as a trusted account.

Submit Transfer Request:

After adding the trusted account, you can initiate a share transfer request by selecting the shares you want to transfer and confirming the details.

Confirmation and Transfer:

The transfer usually happens within a few hours or the next business day.

Steps for NSDL Speed-e Transfer:

Login to NSDL Speed-e:

Visit the NSDL Speed-e platform and log in using your credentials.

Transfer Securities:

After logging in, choose the securities you want to transfer and select the target demat account (which can also be in NSDL or CDSL).

Authenticate and Confirm:

Authenticate the transaction using the required passwords and tokens, then submit the request for processing.

2. Manual Transfer via Delivery Instruction Slip (DIS)

The traditional method of transferring shares between demat accounts involves using a Delivery Instruction Slip (DIS). This slip is provided by your current broker, and you’ll fill it out to instruct them to transfer your shares.

Steps for Manual Transfer:

Obtain a Delivery Instruction Slip (DIS):

Request a DIS book from your current broker or depository participant (DP). The DIS functions like a cheque book but for transferring shares.

Fill in the Required Details:

Provide the ISIN (International Securities Identification Number) of the shares you’re transferring.

Enter the target demat account number and details of the receiving depository participant (DP).

Specify whether the transfer is intra-depository (within the same depository, CDSL to CDSL or NSDL to NSDL) or inter-depository (CDSL to NSDL or vice versa).

Submit the DIS to Your Broker:

Once you’ve filled in the necessary details, submit the DIS to your current broker or DP. They will process the transfer.

Confirmation of Transfer:

After submission, it may take a couple of days for the shares to be transferred, depending on the depository and broker's processing time.

Key Points to Keep in Mind:

Check for Fees: Brokers may charge a fee for transferring shares, especially if it’s between different depositories (CDSL to NSDL or vice versa).

UIN Required for Large Transfers: If the value of the shares being transferred exceeds a certain threshold, you may need to obtain a UIN (Unique Identification Number).

Account Status: Ensure that both the source and target demat accounts are active and in good standing.

Tax Implications: Depending on the nature of the transfer, there could be capital gains tax implications. Consult a tax advisor if you’re unsure.

Transferring shares between demat accounts is simple, whether you use online platforms like CDSL’s Easiest or NSDL’s Speed-e or go the manual route with a Delivery Instruction Slip. Both methods are secure, though online transfer is faster and more convenient. If you’re consolidating your accounts, changing brokers, or transferring shares to family, following these steps will make the process hassle-free. Always check with your broker for specific details and fees related to your transfer.