How to Transfer Shares from One Demat Account to Another

I can definitely help you transfer shares from one Demat account to another, regardless of the platform – be it Zerodha, Upstox, Groww, Kotak or any other. Just let me know how I can assist you.

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.

Transferring shares from one Demat account to another is a straightforward process that can be performed at any point during trading. Maintaining a track record of all shares is crucial, particularly when handling multiple shares or trading for a good price. By executing trades in a timely manner, you can ensure a seamless and stress-free trading experience.

How to Transfer Shares from One Demat Account to Another

Reason to Transfer Shares from One Demat Account to Another

Transferring shares from one demat account to another is a common need for many investors. To help you understand when it is allowed, I can confidently share with you some situations in which such a transfer can be made.

  • 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:

Transferring shares between demat accounts can have tax implications. However, if the transfer is between the same individual, there may be no tax liability. It’s important to note that capital gains will be calculated based on the initial purchase date of the stock, and the transfer date will not affect this calculation. Rest assured, you can confidently proceed with your share transfer while keeping these tax implications in mind.

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:

Can we have two demat accounts?

The inventory allowed to open any number of demat accounts, as long as they have different depository participants. The same DP should not used to open a demat account and thus that will make you not eligible for trading.

Can I transfer back shares again between demat accounts?

Yes, until you hold the ownership of shares in the stock market. The individual may allowed to transfer it to any account and can also move them back, if they hold the ownership of that particular demat account.

Does transfer of shares between brokers cost much for a demat account?

In case, if you have opened a new demat account and you have changed the broker. The applicable charges for the transfer of share from one demat account to another between the old broker and new broker applied.