How to Transfer Shares from One Demat Account to Another?

The four bodies involved in the share transfer process are:

• The Investor

• The Current broker

• The New broker

• The Depository firm (NDSL or CDSL)

You can initiate a share transfer from one Demat Account to another in two ways.

Manual Transfer Method:

Step 1:

First, you must get a Delivery Instruction Slip (DIS) from your current broker. This slip will contain information related to the share transfer. You will need to complete the transfer details to transfer the shares successfully. The details you need to fill in are as below:

• Beneficiary broker ID – This is a 16-digit unique ID of the broker or the banks involved in the transfer. Provide the ID for both your existing and new broker on the slip.
  
  

• International Securities Identification Number – This number identifies the individual share in your account. You should carefully enter this number along with the quantity of the shares.
  
  

• Mode of Transfer – If you want to do an Intra-depository transfer, you must choose off-market. Otherwise, select the inter-depository option.
   

Step 2:

The last step involves putting your signature on the slip and then submitting it to the existing broker. The broker will charge you for the share transfer. These charges may vary from one broker to another.

Online Transfer Method

The CDSL depository firm offers an online transfer method called electronic access to securities information and execution of secured transactions (EASIEST). You can quickly transfer shares from one Demat Account to another online using this method. Follow the steps given below to transfer shares online:

• Login to the CDSL site

• Click on the Register Online

• Select the EASIEST option

• Fill in the details asked 

• Send a copy of the details to your Depository Participant

The Depository Participant will send the copy to the Central Depository. They will verify your given details, and you will receive the login credentials after 1-2 days. With these credentials, you can log in and see your broker list. Now, you can transfer your shares.

• If the transfer of shares is to the same person, then there will be no tax liabilities.

• If you transfer shares to a different person's account, you will have to mention the reason; if the transfers are done via a gift deed and do not cross the limit, there will be no tax liabilities.

• If you transfer the shares you have initially received via a Demat transfer, you will be liable for capital gain tax.

To  apply for a Demat Account  at HDFC Bank,  click here.

*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in the securities market are subject to market risks; read all the related documents carefully before investing.