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How to Transfer Shares from One Demat Account to Another? 

Low brokerage Demat account opening

Demat accounts are a common way for investors to hold shares, bonds, mutual funds, and other financial securities. A dematerialized account is an electronic record of the protection you own. 

After opening a Demat account online, you may wonder if it is possible to transfer shares between them. After all, moving your shares between different Demat accounts can be pretty helpful if you need to check the balance of one version or transfer the shares to another bank where you have opened a new Demat account. 

What’s Next?

To transfer shares from one Demat account to another, you have to approach your stockbroker or transfer agent. He will contact your current depository participant (DP) and request them to complete their share transfer instructions. Once received, these shares will be available in your new Demat account. The process takes up to a couple of days.

Types of Shares That You Can Transfer

 There are two types of shares that you can transfer from your Demat account:

  •  Free of payment (FOP) and 

  • Against the cost (AP)

FOP shares are transferred without any money exchange between the seller and buyer, while AP involves a monetary transaction. If you want to transfer FOP shares, you should have a Demat account with buying and selling depository participants.

The Process to Transfer Shares from One Demat Account to Another

Online Demat Account opening

To begin with, you will have to transfer shares of one company into a third-party dematerialized account. If you try transferring shares into your existing dematerialized account, you will get only an in-kind transfer and not a legal transfer. You can perform in-kind transfers by moving your shares from one authorized depository participant (ADP) or dematerialized securities holder (DSH) account to another ADP or DSH.

The best Demat account offers you this facility. The process followed is known as Intra-Depository Transfer or I-D-T. There are two ways you can do this:

  • Off-Market Transactions: You must instruct your DP (depository participant) through a delivery instruction slip (DIS). You can physically visit the DP or send an eDIS or MDIs (electronic/mobile DIS). Once the instruction is given, the broker will transfer the shares within T+2 days.

  • On-Market Transactions: This can be done through the stock exchange, where both your old and new Demat accounts have trading rights. In this case, you need to instruct in the form of a letter of authorization (LOA) to your DP.

Being familiar with this process is vital before opening a Demat account online. Also, don’t forget to ask about Demat account charges in share transfer to avoid any dispute later. 

Information Required

The Demat account holder should provide the following documents while filling up the form:

  • A letter from the stockbroker/ sub-broker is requesting the transfer of shares.

  • Application form to be filled in by the holder.

  • Details of shares to be transferred include company name, number of shares, ISIN number, and certificate numbers.

  • Details of the new Demat account, such as Demat account number and name, address, and telephone numbers of the account holder.

  • The signature (s) on the application form should match that in the Demat accounts.

Pro Tip:

The best DP is one who takes minimum Demat account charges and provides quality service. 

Key Steps Involved:

The investor fills out the DIS (Delivery Instruction Slip). Then, they send it to their current broker. The broker then sends the DIS form to the depository, and The Depository will move your old shares to your Demat account. When all of the investor’s shares have been transferred to their new Demat account, it will show up there.


Transferring shares from one Demat account to another is easy, but this can only be done after the accounts have been linked. Also, you should consider some crucial Demat account information before transferring shares from one Demat account to another. You cannot transfer shares if either version has some pending transactions. Also, if you do not have a bank account linked with your new Demat account, you cannot transfer more than Rs 50,000 in a single day. Not to mention that both Demat accounts should belong to the same person or organization.

The current brokerage firm might charge the investor for this process. The Demat account charges for each broker are different, and this is because they differ slightly from broker to broker. If the investor wants to close their Demat account with the current broker, this procedure is free of charge for the investor.

A third thing to keep in mind if an investor decides to close his Demat Account is to give the broker back all unused DIS.

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