How to Transfer Shares from One Demat Account to Another
Moving your shares to a new account doesn’t mean selling them. It’s more like changing which shelf they sit on.
By Sudhir Bhalla — Ashlar Securities
Maybe you’re switching to a broker with lower charges. Maybe you opened a second account for a different purpose, and now want everything in one place. Or maybe a family member passed on shares to you, and they’re still sitting in the old account.
Whatever the reason, the good news is simple: moving shares from one demat account to another is a normal, everyday process. You’re not selling anything, and you’re not buying anything new. You’re just telling your shares to sit in a different account from now on.
This guide walks through exactly how that works, step by step, in plain words.
Why would someone transfer shares at all?
- Switching brokers. Moving to a broker with lower charges, a better app, or better support, without selling and rebuying everything.
- Combining accounts. Bringing shares from two or three old accounts into one, so everything is easier to track.
- Gifting shares. Moving a few shares into a family member’s account as a gift.
- Inherited shares. Moving shares that belonged to a parent or relative into your own account after their passing, following the required legal process.
- Closing an old, unused account. Before closing an account you no longer use, any shares sitting in it need to be moved out first.
The two ways to transfer shares
There are really just two routes. Which one you use depends on whether your old broker offers an online option.
Online transfer (the easy way)
If your shares are with a depository called CDSL, you can often use an online service called CDSL Easiest. If they’re with the other depository, NSDL, the equivalent service is called NSDL SPEED-e. Both let you register once, then move shares whenever you like, without paper forms each time.
How it works: you register for the online facility with your old broker, add the details of your new demat account as a recipient, and then simply log in and submit a transfer request whenever you want to move shares. No physical signing needed once you’re set up.
Paper transfer using a DIS slip (the traditional way)
A DIS slip (short for Delivery Instruction Slip) is a small paper form, a bit like a cheque book leaf, that your old broker gives you when you open an account. You fill it in by hand and submit it to your old broker to move shares out.
How it works: you write down the shares you want to move (the company name and quantity), your new demat account’s details, and sign it. You submit this to your old broker, either by visiting their office or sometimes by courier, and they process the transfer.
Step-by-step: how to actually transfer your shares
- Open your new demat account first, if you haven’t already. You’ll need its details (your demat account number, called a Client ID, and the DP ID of your new broker) to fill in the transfer request.
- Decide which shares you want to move. Note down the company name and the exact number of shares for each one.
- Check if your old broker offers an online transfer facility. If yes, register for it and submit the request online. If not, collect a DIS slip from them.
- Fill in the form carefully. One small mistake in the account number or company name can delay the transfer or send shares to the wrong place.
- Submit the request to your old broker, online or on paper.
- Wait for the shares to arrive. This usually takes a few working days. You’ll be able to see the new shares appear in your new demat account once it’s done.
If you’re transferring many different companies’ shares at once, some brokers also offer a simple online tool, sometimes called a Closure cum Transfer form, that moves everything out in one go, which is handy if you’re closing the old account right after.
Does transferring shares cost anything?
Usually, yes, a small amount. Your old broker (the one you’re moving shares out of) typically charges a small transfer fee for every company whose shares you move, often called an off-market transfer charge or DP charge. There is usually no charge from the new broker for receiving shares.
The exact amount differs from broker to broker, so it’s worth checking your old broker’s tariff before you submit the request.
Does transferring shares mean I have to pay tax?
Simply moving shares from one of your own demat accounts to another of your own demat accounts is not a sale. You still own the same shares, just parked somewhere else. So by itself, this kind of transfer usually doesn’t create any tax to pay.
That said, tax rules can get specific, especially if shares are being gifted to someone else, or inherited, rather than simply moved between your own accounts. If you’re transferring shares for a reason other than switching your own accounts, it’s worth checking with a tax professional for your exact situation.
Common mistakes to avoid
- Getting the new account’s details wrong. A wrong Client ID or DP ID can send your shares to the wrong place, or simply cause the request to fail. Double-check before submitting.
- Forgetting to check the transfer charge. If you’re moving many different companies’ shares, these small per-company charges can add up.
- Closing the old account too soon. Make sure every share has actually arrived in the new account before you close the old one.
- Signing a blank or incomplete DIS slip. Fill in every detail yourself before signing, and never hand over a signed blank slip to anyone.
- Assuming it happens instantly. It usually takes a few working days, not minutes, so plan ahead if you need the shares in your new account by a certain date.
Common questions
1. How long does a share transfer usually take?
Typically a few working days, though it can vary depending on the broker and the method used. Online transfers are generally faster than paper DIS slips.
2. Do I need to sell my shares to switch brokers?
No. You can transfer your existing shares directly from your old demat account into your new one, without selling and buying them again.
3. What is a DIS slip?
A Delivery Instruction Slip is a paper form, similar to a cheque leaf, that you fill in and sign to instruct your broker to move shares out of your account.
4. Is there a charge for transferring shares?
Usually yes, a small per-company fee charged by the broker you’re moving shares out of. There’s typically no charge for receiving shares into the new account.
5. Will I owe tax just for moving shares between my own accounts?
Generally no, since you still own the same shares, just in a different account. It’s not treated as a sale. Gifting or inheriting shares can work differently, so check with a tax professional in those cases.
6. Can I transfer only some of my shares, not all of them?
Yes. You can choose exactly which companies and how many shares of each to move, and leave the rest where they are.
7. What if I make a mistake on the transfer form?
Contact your broker as soon as possible. A wrong account number can delay or misdirect the transfer, so it’s best to double-check everything before you submit the request.
Moving your shares to Ashlar
If you’re switching to Ashlar, here are the details you’ll need to fill in on your old broker’s transfer form.
Ashlar at a glance
Ashlar Securities Pvt. Ltd. is a SEBI-registered brokerage.
Stock Broker: INZ000203739
Depository Participant: IN-DP-2362016
Ready to move your shares?
Open a demat account with Ashlar, and use the details above to start transferring your shares from your old broker.
Open your account with Ashlar →
Written by Sudhir Bhalla for Ashlar Securities — simple, honest guides on demat accounts, charges, and the Indian securities market.
Investments in securities market are subject to market risks. Read all related documents carefully before investing.
Processes and charges are based on common broker and depository practice at the time of writing and may vary by broker. Please confirm tax treatment with a qualified tax professional for your own situation.