To transfer shares from one Demat account to another online, follow these steps:
- Fill out a form called the DIS (Delivery Instruction Slip) and give it to your current broker.
- Your broker will send this form to the depository.
- The depository moves your shares to the new Demat account.
- You’ll see the shares in your new Demat account when the transfer is complete.
What is a Transfer of Shares?
A transfer of shares in the stock market is the process of moving ownership of stocks from one person or entity to another. This can happen through selling, gifting, or inheritance, resulting in a change of the registered owner of the shares.
How To Transfer Shares From One Demat Account To Another?
To move shares from one Demat account to another online, here’s what you need to do:
Complete a DIS Form: Start by filling out a Delivery Instruction Slip (DIS), which is a form that tells your broker what to do with your shares. Make sure all details are correct, especially the target Demat account number.
Broker Processes the DIS: Hand over this form to your current broker. They will then process your request and forward the DIS to the appropriate depository – either NSDL or CDSL, depending on where your shares are held.
Depository Initiates Transfer: Upon receiving the request, the depository will start the process of transferring your shares. They’ll move them out of your current Demat account and into the new one you’ve specified.
Confirmation in New Account: Once the transfer is successfully completed, you will be able to see the shares in your new Demat account. This might take a few days, so don’t worry if it’s not immediate.
Time Required for Transfer of Shares
Transferring shares from one Demat account to another typically takes 3-4 hours. This duration depends on the transfer type: Inter-repository (between different depositories) may take longer, while Intra-repository transfers (within the same depository) are quicker, usually under 30 minutes.
What are the Tax Implications of Transferring Shares?
How To Transfer Shares From One Demat To Another Online? — Quick Summary
- Complete a DIS form and provide it to your current broker, who sends it to the depository. Shares were transferred to the new Demat account. View them once the transfer concludes.
- Shares in the stock market transfer ownership when sold, gifted, or inherited, leading to a change in the registered owner.
- Fill out a DIS form for share transfer and submit it to your broker. They process it, and upon approval, the depository initiates the transfer.
- Transferring shares takes 3-4 hours. Inter-repository transfers may take longer, while Intra-repository transfers are quicker, often under 30 minutes.
Transfer Shares From One Demat To Another Online – FAQ
What is the cost of a share transfer?
The current stamp duty rate for share transfers is 0.25% for every one hundred rupees of the share’s value or its fraction.
How much time is required for the transfer of shares?
The transfer of shares between Demat accounts should be completed within 3–4 hours, depending on whether it’s an Inter-repository or an Intra-repository.
Can We Transfer Shares From One Person To Another?
Yes. If you possess several Demat accounts, you can move your shares from one account to another.
