How to Easily Transfer Shares from One DEMAT Account to Another

by Dixon Daniel
29 November 20237 min read
How to Easily Transfer Shares from One DEMAT Account to AnotherHow to Easily Transfer Shares from One DEMAT Account to Another
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Share Transfer in India: An Overview

In the bustling Indian stock market, a massive transaction of 2.3 billion equity shares was recorded in a single day in February 2023.

This trading activity, a testament to the country’s vibrant economic growth, is underpinned by the robust systems and procedures laid down by the country’s two depositories, CDSL and NSDL.

One such essential procedure that plays a significant role in stock trading is share transfer from one demat to another.

This process, seemingly complex, is actually straightforward when the right steps are followed. In this blog, let us learn more about how to transfer shares from one demat account to another in offline and online mode.

Step-by-step Guide: How to Transfer Shares from one Demat to Another

  1. Contact Your Depository Participant (DP): To initiate the process, get in touch with your DP. The DP could be your bank or a stockbroker, such as Rupeezy.
  2. Fill the Delivery Instruction Slip (DIS): A Delivery Instruction Slip, or DIS, is akin to a cheque book for your demat account. It’s used to instruct your DP to debit stock holdings from your demat account and credit recipient’s demat account.
  3. Fill the DIS with all the necessary details like the ISIN of the shares you want to transfer, the quantity, and the details of the recipient’s demat account. Always double-check this information before submitting.
  4. Submit the DIS: Hand over the filled DIS to your DP. They will then process your request and the shares will be transferred from your demat account to the recipient’s account as per the timeline specified by the depository.

Online Transfer Shares from One Demat to Another: The Digital Way Forward

In this tech-savvy era, transferring shares online is becoming increasingly popular. Here is a simple guide on how to transfer shares from one demat to another online. 

  1. You can transfer shares through NSDL e-DIS facility
  2. NSDL Demat Gateway e-DIS facility is an integration between the brokers and NSDL Demat Gateway which facilitates Clients to provide mandate/consent to debit and transfer securities from their demat accounts.
  3. Using this facility, demat account holders can fulfil their pay-in obligations without having the need to submit Power of Attorney to their stock broker.
  4. Under this facility, based on the mandate submitted by the Client, Clearing Members submits the instruction to the DP to debit the securities from the client demat account as per instruction. NSDL validates the details of debit instruction with obligation details uploaded by CCs. 
  5. Upon debit of securities from the Client account, NSDL sends SMS to clients at their registered mobile number.

Paperwork and Documentation: Pillars of Share Transfer

Before initiating the transfer of shares, it’s imperative to understand the necessary paperwork involved. While the list of documents may not be extensive, the significance of each is paramount for a successful transaction.

  • Delivery Instruction Slip (DIS): As previously mentioned, a DIS is a key document required for transferring shares. This is provided by your DP and needs to be filled out with correct details.
  • Client Master Report (CMR): This document contains all the crucial information about your demat account such as your name, address, PAN number, and bank details. The CMR of the recipient demat account is necessary for a successful share transfer.
  • Proof of Identity and Address: This includes documents such as Aadhaar Card, PAN Card, Driving License, etc. Though not always required, these may be asked for by your DP to confirm your identity before proceeding with the share transfer.

Ensure that you have these documents handy before initiating a share transfer to avoid any hiccups in the process.

Cost Factor: Understanding Charges in Share Transfer

Another aspect to keep in mind while transferring shares from one demat account to another is the cost involved. While the charges may not be hefty, being aware of them helps in making informed decisions.

The charges for share transfer can be broken down into two types:

1. DP Charges: These are fees charged by your Depository Participant for the services they provide. These can vary from one DP to another.

2. Depository Charges: These are fees charged by the depositories for their services.

Table 3: Average Charges for Share Transfer in India

Type of Charge
Average Cost (INR)
DP Charges
25 – 50 per ISIN
Depository Charges
5 – 10 per ISIN

Keep in mind that these charges are indicative and can vary based on your DP and the type of transfer (off-market or on-market).

Why Transfer Shares: Unraveling the Benefits

There are multiple reasons why an investor might choose to transfer shares from one demat account to another. Here are some common motivations:

1. Consolidation: Having all shares in a single demat account makes it easier to manage your portfolio. It is simpler, less time consuming and cost effective to track and transact through a single account than have multiple accounts. 

2. Better Services: You might choose to move your shares to a different demat account if it offers better services, lower charges, or more efficient customer support. With digital transformation, you can open demat and trading accounts at the click of a button.

New age brokers offer superior tech enabled platforms with a host of services like advanced trading tools, research reports, margin facility at attractive interest rates and multiple segments e.g. stocks, derivatives, currencies and commodities.

Explore Rupeezy today and open a demat account with zero account opening fee. Enjoy free equity intraday trading with swift easy to use Flow app

3. Gifting or Inheritance: Shares might be transferred from one demat account to another in cases of gifting or inheritance. Legal heirs are required to get assets transferred in their name after a shareholder’s demise.

4. Changing Brokers: If you decide to change your broker, you will need to transfer your shares to a new demat account associated with the new broker.

You can always switch to a new broker without having to sell your stock portfolio, using the share transfer facility. 

Knowing why you are transferring shares can help you better understand the process and its importance.

Whether you’re aiming to consolidate your shares or seeking better services, understanding the procedure and requirements can make the transition smooth and hassle-free.


Transferring shares from one demat account to another is a significant step in an investor’s journey.

Whether you opt for the traditional offline method or the convenience of online transfer, the process ensures the seamless transition of your securities.

By following the proper procedures, providing the necessary documents, and paying attention to charges, you can transfer shares with ease.

Remember to consult your Depository Participant or the online portal of your depository for specific instructions and guidelines tailored to your account.

Key Takeaways

  • The process of transferring shares from one demat account to another, though seeming complex, is straightforward with the correct guidance.
  • This process involves filling a Delivery Instruction Slip (DIS) and submitting it to your Depository Participant (DP).
  • Online share transfer is an emerging trend that offers convenience and speed to the investor.


How can I transfer shares in NSDL online?

To transfer shares in NSDL online, log in to your NSDL demat account, and submit the e-DIS. Follow the instructions provided by NSDL or your DP for a successful online share transfer.

What happens when we transfer shares from one demat account to another?

When shares are transferred from one demat account to another, they are debited from the sender’s account and credited to the recipient’s account. The transfer is reflected in the respective demat account statements.

What documents are required for the transfer of shares from one demat to another?

Documents required for the transfer of shares from one demat account to another include the Delivery Instruction Slip (DIS), Client Master Report (CMR), and proof of identity and address.

These documents ensure the authenticity of the transfer and the verification of the parties involved.

What is the benefit of transferring shares?

Transferring shares offers benefits such as consolidating shares in one demat account, accessing better services from a different DP, facilitating gifting or inheritance of shares, and accommodating a change in brokers.

It allows investors to optimize their portfolio management and align their investments with their evolving needs and preferences.

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