How To Transfer Shares From One Demat Account To Another

Switching things up in life is normal. Sometimes, it’s a new job, a new city, or even a new Demat account!
Maybe you found a broker with better services, lower fees, or just a smoother app experience.
If you're wondering how to transfer shares from one Demat account to another, you're definitely not alone.

You have to follow a few steps carefully to make sure everything moves over without a hitch.

Let’s walk through it — the easy way.

Why Would You Transfer Shares?

Before we dive into the how, let’s quickly touch on the why. Some common reasons include:

• Switching to a broker with better service or lower charges.
• Consolidating multiple Demat accounts into one account.
• Changing brokers after a bad experience (we’ve all been there).
• Moving shares to a joint account or family member's account.

Transferring shares is a personal choice — and it’s absolutely doable.

Types of Transfers: Off-Market vs. On-Market

There are two ways to transfer shares between Demat accounts:

1. Off-Market Transfer

• This is a direct transfer between two Demat accounts, without going through the stock exchange.
• Mostly used when no actual sale happens — you just want to move shares.

Example: Moving shares from your old account to a new one you just opened.

2. On-Market Transfer

• This goes through the stock exchange.
• Usually done when shares are being sold or gifted with proper consideration.

Example: Selling shares to another person via the normal trading route.

👉 For simply moving shares from one of your accounts to another, you’ll be doing an off-market transfer.

How To Actually Transfer Shares: Step-by-Step

Step 1: Open a New Demat Account

If you’re transferring because you want a fresh start, the first step is obviously to open a new Demat account.
Pick a broker that suits your needs — think about brokerage fees, platform usability, customer service, etc.

Pro tip:
Choose a broker (JM Financial Services)  who allows easy online transfers to save yourself some paperwork.

Step 2: Get the DIS Slip From Your Old Broker

Now, remember when you opened your first Demat account, they gave you a little thing called a DIS booklet?
DIS = Delivery Instruction Slip.
It’s kind of like a cheque book but for transferring shares.

If you don't have it handy just request a new booklet from your old broker.

What’s inside a DIS?
You’ll find fields like:

• Your old Demat account number (DP ID and Client ID)
• ISIN number of each stock (this is like a stock’s Aadhar number)
• Quantity of shares to transfer
• New Demat account number (where you want to transfer)

Step 3: Fill the DIS Carefully

While filling out the DIS slip:

• Double-check your new account details.
• Write the correct ISIN numbers (even one wrong digit can cause delays).
• Mention if you want a full transfer or partial transfer.
• Sign properly — your signature must match the one registered with your broker.

Step 4: Submit the DIS Slip

• Submit the DIS to your old broker (either by visiting their office or sometimes they allow courier).
• Some brokers even offer online DIS (eDIS) — super handy if you prefer digital.

After submission, your broker will start processing the transfer.

Step 5: Wait for the Transfer to Reflect

It usually takes about 3 to 5 business days for the shares to move into your new Demat account.
Some brokers might even send you regular updates via SMS or email — pretty neat.

Once the transfer is complete, you’ll see the shares sitting pretty in your new account, ready to trade, sell, or just hold onto.

Important Tips To Keep In Mind

• Charges: Some brokers charge a small fee per ISIN transferred. Always check in advance.
• Tax Implications: Transfers between your own accounts usually don’t trigger tax. But transferring to someone else might.
• Account Status: Make sure both Demat accounts are active during the transfer process.
• Keep Copies: Always keep a copy of the filled DIS slip for your records, just in case something goes wrong.

What If You’re Closing the Old Demat Account?

If your goal is not just transferring but closing the old account too, here’s an extra tip:

• After the shares are transferred, submit a Demat Account Closure Form to your old broker.
• Make sure your account has zero balance — no shares and no pending dues.
• Some brokers even have a "Transfer and Close" option to simplify this process.

Closing dormant accounts is a smart move. It saves you from future maintenance charges and unnecessary paperwork.

Final Thoughts:

Transferring shares sounds way more complicated than it actually is.
If you stay organized, double-check your details, and follow the steps calmly, it’s a pretty smooth experience.

In today’s digital age, brokers are making the process simpler every day. Some new-age brokers even allow full online transfers — no running to offices, no couriering slips.

If you’re planning to transfer your shares, don’t stress. Just take it step-by-step, and soon, your investments will be exactly where you want them to be.