How to transfer share from one demat to another?
In this article, we will discuss how to transfer shares from one demat account to another. The most common reason behind the transfer of shares from one Demat account to another is that you want to switch your current broker.
You can transfer shares from one demat account to another demat account into two ways:
The mode of share transfer depends upon the depository with which your broker is associated. One stockbroker can also be associated with both depositories. Stock Brokers are known as depository participant (DP).
Share Transfer Process From One Demat To Another
Share are stored and maintained by the depository. In India, two depositories are authorized to maintain and hold the shares of investors known as National Security Depository Limited (NSDL) and Central Depository Service Limited (CDSL).
There are two types of transfer:
- Intra-depository transfer: If your existing brokers & new stockbroker (in which you want to transfer your shareholding) are associated with the same depository. This type of transfer is within the depository itself. So, It is known as intra-depository transfer or off-market transfer.
- Inter-depository transfer: When you are existing broker and new broker are associated with the different depositories, this type of transfer known as Inter depository transfer.
As transferring of a share depends on two brokers. To explain this process simply we consider namely the first existing broker for reference we take this as A and another broker in which we want to transfer share is called up as new broker (named as B).
If you didn’t have opened an account with the new broker you can fill the form to get the best deal in demat account opening with any stockbrokea & lifetime free support from Paisowala.
The share transfer process is not much difficult. In case, if you get stuck in between you can arrange free expert advice, you will get a callback within 24 hours.
Offline Share Transfer Process
In Offline Share Transfer, we need debit instruction slip (DIS) provided by existing stockbroker “A” (DP) & CMR (Client Master Report) from the new Stock Broker “B”. DIS is very similar to the cheque book in nature & looks very similar to below mention sample DIS Slip.
Now you have to fill up some mandatory field into DIS slip to do the transfer of shares.
- Beneficiary owner ID (BO ID): This 16-digit code includes 8 digit ID of the client and the 8 digit ID of the DP (Broker). You have to provide the 16-digit BO ID of existing broker “A” & new brokers “B” in the slip this code is unique to every client.
- International securities identification number (ISIN): It’s a unique code through which one can easily Identify any security/shares in the demat account. This number needs to be mention for a particular share that you want to transfer.
- Mode of transfer: I have already explained the type of transfer above in the first paragraph. You have to choose this option carefully based on the debiting account and the target demat account. If the transfer happens through the intra-depository, you have to opt for the ‘off-market transfer’ option. In another case, the mode of transfer is Inter-Depository, then you have to tick the “Inter-Depository” column.
Once the DIS slip is fill up all the field then all the account holder has signed the DIS form. Make sure that your signature needs to exactly match with a database of the DP & then submit it to the existing broker.
Online Share Transfer Process
Fill Up Registration Form
Printing Application Form
Final Thought
In both online & offline share transfer process you have to submit the physical application to the stockbroker. After submission, it takes 5-7 days for the transfer to be completed.
Your Existing brokers may charge you for transfer depending upon the stockbroker.
If you close your demat account with your existing broker and transfer the share to another broker then there won’t be any charge levied to you.
