How to transfer shares from one demat account to other
Transfer of shares is the process of transferring your existing shares from your present demat account to another demat account. As the owner of shares, you can sell them at any time to obtain cash or change the composition of your investment portfolio.
Types of Share Transfers (Bold)
There can be two types of share transfers. They are as follows.
Intra-depository transfer (Bold) : This refers to the transfer of shares between two demat accounts that are maintained within the same depository, either NSDL or CDSL. Since the depository remains the same, the process is typically faster and more straightforward, requiring fewer formalities.
Inter-depository transfer (Bold) : An inter-depository transfer is when shares are moved from a demat account in one depository to another - e.g., from an account with NSDL to one with CDSL, or vice versa. This transfer process involves additional steps and may also require the use of a Delivery Instruction Slip (DIS) that is specific to such transfers.
You can either follow a manual process or offline process to transfer shares
The Manual Procedure (Bold)
For the manual procedure, you will have to get the Delivery Instruction Slip (DIS) from your broker. You will have to fill out some mandatory fields in the DIS. These include:
Beneficiary owner ID (BO ID): It is the 16-digit ID of the broker. You will have to mention the ID of both the brokers involved.
International securities identification number (ISIN): It is a unique identification number for identifying the shares in a demat account. You must mention this number to specify the shares that need to be transferred.
Mode of transfer: If it is an intra-depository, you must choose the ‘off market transfer’ option. Otherwise, it’ll be an inter-depository transfer. Once you fill out the form, you must sign it. The signature needs to match the one saved in the DP database. After this, you need to submit the DIS slip to the current broker. Your broker may levy some charges for the transfer. This amount may vary from one broker to another. However, the broker cannot charge any fee if you close the demat account.
The Online Procedure (For intra-depository transfer) There are two ways to transfer shares online from one demat account to another. One is via Central Depository Services Limited (CDSL) and another is through National Securities Depository Limited (NSDL). CDSL has a feature is called ‘EASIEST’ while NSDL has a ‘Speed-e’ facility to help you transfer shares from one demat account to another online. You need to register yourself on these websites to use these. The process for this is as follows:
Visit the website.
Register for EASIEST or Speed-e facility.
Fill in the details and submit the form.
Take a printout and give it to the DP.
The DP will forward the transfer request to the DP, who will verify your details. You will get the login credentials in your email within a couple of days.
Login with the credentials and transfer your shares.
The Time Required to Transfer Shares Your current stockbroker will usually take 3 to 5 working days to transfer shares from your existing demat account to the new one. However, this may vary from one broker to another. Generally, online transfer of shares takes place faster than manual transfers.
In addition, if there are weekend holidays, it may take a few more days. The depositories are closed on national holidays. Some brokers may not work on those days. So, your transfer request gets processed when the depositories reopen on the next working day.