How to Transfer Shares From One Demat Account to Another?

Demat Account

In the world of investing, where agility and flexibility are paramount, the need to transfer shares from one Demat account to another often arises. Whether you’re switching brokers, consolidating your holdings, or gifting shares to a family member, understanding the process of transferring shares is crucial. In this comprehensive guide, we’ll walk you through the steps of how to transfer shares from one demat account to another.

Understanding Demat Accounts:

Before delving into the transfer process, it’s essential to grasp the concept of Demat accounts. A Demat (short for Dematerialized) account is an electronic repository for holding and managing your investments in the form of shares, bonds, mutual funds, and other securities. It eliminates the need for physical share certificates and facilitates easy and secure trading and investment.

When you decide to transfer shares from one Demat account to another, it essentially means shifting the ownership of securities from your existing account to a new one, which could belong to you or another individual/entity.

Types of Share Transfers:

There are primarily two types of share transfers between Demat accounts:

  1. Off-Market Transfer: In this type of transfer, shares move from one Demat account to another outside the stock exchange. This is typically used for private transactions, gifts, or when changing brokers.
  2. On-Market Transfer: In an on-market transfer, shares are moved from one Demat account to another through stock exchange mechanisms. This type of transfer may involve selling shares in one account and buying them in another. It is usually used when you are shifting your investments from one broker to another.

Now, let’s explore the step-by-step process for both types of share transfers:

Off-Market Share Transfer:

  1. Open a Demat Account (if required): Ensure that the recipient of the shares has a Demat account. If not, they need to open one with a registered Depository Participant (DP).
  2. Contact Your DP: Inform your current DP (where the shares are held) about your intention to transfer shares to another Demat account. They will provide you with the necessary Transfer Instruction Slip (TIS) form.
  3. Fill Out the TIS Form: Carefully fill out the TIS form, including details of the shares you wish to transfer, the recipient’s Demat account information, and your signature. Ensure accuracy to prevent any delays.
  4. Submit the TIS Form: Submit the TIS form to your DP along with the share certificates (if applicable). The DP may charge a nominal fee for processing the transfer.
  5. Verification and Approval: Your DP will verify the TIS form and documents. Once approved, they will forward the request to the central depository system.
  6. Confirmation: Both the sender and receiver of shares will receive a confirmation of the transfer from their respective DPs. The shares will be credited to the recipient’s Demat account.

On-Market Share Transfer (Inter-Depository Transfer):

  1. Open a New Demat Account: If you’re transferring shares to a new brokerage account, ensure it’s opened and ready for use.
  2. Link the New Demat Account: Link your new Demat account with your existing trading account with the new broker.
  3. Initiate the Transfer: Submit a Delivery Instruction Slip (DIS) to your old broker, instructing them to transfer the shares to your new Demat account. Ensure that you mention the target DP’s name and account details correctly.
  4. Verification: Your old broker will verify the DIS and initiate the transfer request to the depository.
  5. Acceptance by the New Broker: The new broker will receive the transfer request and confirm the acceptance.
  6. Transfer Execution: Once accepted, the shares will be debited from your old Demat account and credited to your new Demat account.
  7. Confirmation: Both your old and new brokers will send you confirmation of the transfer. Verify your new Demat account to ensure the shares are correctly deposited.

Key Points to Remember:

  • Time Frame: Share transfers can take several days to complete, so plan accordingly.
  • In-Person Visit: For off-market transfers, you may need to visit your DP in person, while on-market transfers can often be done electronically.
  • Charges: Be aware of the charges associated with share transfers, including DP charges, transaction charges, and GST.
  • Documents: Ensure all documents, including TIS/DIS forms and share certificates (if applicable), are filled out correctly.
  • PAN and KYC: Ensure your Permanent Account Number (PAN) and Know Your Customer (KYC) details are up to date with both DPs.
  • Stock Exchange Regulations: Be aware of the rules and regulations of the stock exchange when transferring shares on the market.


Transferring shares from one Demat account to another is a standard procedure in the world of investing. Whether you’re consolidating accounts, changing brokers, or gifting shares, understanding the process is essential to ensure a smooth transfer. By following the steps outlined in this guide and paying attention to the details, you can confidently navigate the share transfer process and continue managing your investments effectively in your new Demat account. Always consult with your financial advisor or stock broker if you have any doubts or questions regarding the transfer process.


Q1. How do I initiate the transfer of shares between Demat accounts?

To initiate a share transfer, you need to contact your current Depository Participant (DP), request a Transfer Instruction Slip (TIS) form, and fill it out with the necessary details. Then, submit the TIS form and any required documents to your DP. They will process the transfer on your behalf.

Q2. What are the charges involved in transferring shares between Demat accounts?

Transfer charges may vary among DPs and depend on the type of transfer (off-market or on-market). There are usually DP charges, transaction charges, and Goods and Services Tax (GST). It’s advisable to check with your DP for the specific fees applicable to your transfer.

Q3. How long does it take to complete a share transfer between Demat accounts?

The duration of a share transfer can vary but typically takes several days to complete. The exact timeline depends on factors such as the DP’s processing time and the type of transfer (off-market transfers may take longer). It’s advisable to plan and be patient during the process.

Q4. Do I need to physically visit the DP’s office to transfer shares?

For off-market transfers, visiting your DP’s office in person is often required to submit the TIS form and documents. However, on-market transfers can often be initiated electronically through your trading platform or broker, eliminating the need for a physical visit.

Q5. What documents are needed for a share transfer between Demat accounts?

The required documents may include the filled-out TIS form, share certificates (if applicable), a copy of your PAN card, and Know Your Customer (KYC) documents. Always double-check with your DP for the specific documents they require for the transfer.

by Instockbroker Team | April 8, 2024

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