How to Transfer Shares from One Demat Account to Another

Do you know how to transfer shares from one Demat account to another like from Zerodha, Upstox, Groww, and Kotak to other demat account in another platform…

To trade in mutual funds by buying or selling the shares, a Demat account is very much important. Trading by using the Demat account in Zerodha or Kotak or anywhere is much easier and the same as handling a bank account for transactions. Using a Demat account you transfer shares whereas you transfer funds from a bank account.

At any point of trading, you can move your share from one Demat account to another. If you’re trading for a good price or handling some share, then it is very much important to have a track of every share. As timely performing the trading will only make your trading go smoother.

Reason to Transfer Shares from One Demat Account to Another

There are multiple reasons based on which one might have to transfer their shares from one demat account to another. Below are some points only during which allowed to move shares.

• An individual might have multiple demat Accounts and would like to combine them all together.
• An individual might want to separate from their partner account and would take their percentage share by moving shares to their own demat account
• In case, if you want to switch the broker, then it may required to move the share from one demat to another
• If you have opted for a full service broker and then would require transfer of share for full daily tips and reports on trading.

Process to Transfer Share from One Demat Account to Another

To transfer the share from one Demat Account to another, you might first need to classify yourself between two different repositories such as NSDL and CDSL. There are two types of deposits which are classified below.

• Intra Depository Transfer: If the share transfers between depository itself, then it may refer as intra depository transfer
• Inter depository transfer: If the transfer of share is between one depository to another then it refers as Inter depository.

Manual Share Transfer

The manual transfer of shares from one demat account to another, would require Delivery Instruction Slip from broker. The DIS does contain the mandatory field which must fill to transfer the share.

• Beneficial owner ID which may 16 digit ID must enter and taken from broker and has from both the old and new broker.
• The international securities identification number which is an unique ID to know the share details. This should filled correctly to show which shares are being in the process of transfer.
• The mode of transfer which may intra depository or inter depository that has to clearly mentioned with the options provided.
• All these details have to fill in the form and may add with your signature with your authentication. The applications have to submit to a new broker and then you will come to know which shares may moved to your demat account.

Online Share Tansfer Process

To transfer the share from one demat to another through online, the individual has to register themselves with CDSL online website. The process clearly detailed below, which needs to follow for your share transfer.

1. Go to the official website of CDSL and click on to register
2. Select the option of easiest and fill your details as asked
3. Once the form filled, take the printout with all details
4. Submit the same to depository participant and send to central depository
5. They will verify your details and you will get the login credentials
6. Once you login with credentials, you can view the broker list
7. Now select the share and broker for transfer between accounts

Charges applied during transfer of Share between Demat Accounts:

The tax liability applied when one is trying to transfer the shares between one demat account to another. If the transfer between the same individual person then there may no tax liability applied for the transfer. The capital gain may counted based on the initial date of purchase of stock and transfer date will not make any changes into it.

If the transfer between different people, then the tax liability as applicable for share transfer may paid. The amount of transfer automatically deducted from demat account and may add in your purchase order. The tax liability will be the date of purchase and as well you will be liable for capital gain tax.

Referance page: kotaksecurities.com