Want to transfer shares from one demat account to another but not sure how to begin? You might wish to change your depository participant, merge multiple demat accounts for easier tracking, or perhaps gift shares to a family member.

No matter the reason, understanding the transfer process is important for avoiding delays or errors. Though the process may seem technical, it has become far more user-friendly with the rise of mobile apps.

Below is a clear breakdown of the online share transfer process, along with critical details to watch out for.

Who takes part in the transfer of shares?

The four key players in the share transfer process are:

  • The investor: This is you, the individual initiating the transfer of shares.
  • The current broker: The brokerage where your shares are presently held.
  • The new broker: The destination brokerage where you want your shares to move.
  • The depository (e.g., CDSL): The organisation responsible for holding and maintaining your electronic securities. All instructions and movements flow through the relevant depository.

Step-by-step guide to online share transfer using CDSL Easiest

This guide applies to CDSL accounts. For NSDL, the process differs slightly and is usually offline via DIS. For CDSL accounts, here are the steps to transfer shares from one demat account to another through online mode:

  • Log in to the CDSL website, go to the ‘Transactions’ section, and then click on ‘Setup’.
  • Select ‘Bulk Setup’.
  • Click on ‘Transaction’, enter the execution date, and provide the Beneficiary Owner ID (BOID) for the account receiving the shares. Choose ‘NA’ in the ‘Entity Identifier’ dropdown.
  • Select ‘Account ISINs’, pick the shares (ISINs) you wish to transfer, specify the quantity, and select the reason for transfer. If transferring for consideration, pay stamp duty online before proceeding.
  • Click ‘Submit’. If the beneficiary account is not linked, add the beneficiary first.
  • Tap on ‘Verify’. Skip Exchange ID and related fields for off-market transfers.
  • Click ‘Commit’, then enter the OTP received on your registered mobile and email.
  • Enter the 8-digit CDSL Easiest PIN received by email (not the TPIN). If it’s your first time, change the default PIN after login. If you forget the PIN, use the reset option on the site.

The request will be sent to your broker for confirmation. After approval, the transfer is completed and shares move to the target demat account. This transfer process can be done smoothly through a reliable share market app.

Crucial things to consider while transferring shares

When transferring shares between demat accounts, keep these pointers in mind:

  • Charges: Most brokers apply charges for transferring shares.
  • Timeframe: Transfers often take 3-5 working days to process. Factor in this time if you need quick access to your holdings.
  • Unused DIS slips: If you plan to close your existing account, return any unused delivery instruction slips to the broker.
  • Maintain records: Keep a record of the transaction reference number for future correspondence.

Note: Switching brokers doesn’t always mean you have to change your demat account. If your new broker supports the same depository (like CDSL or NSDL), you may be able to continue using your existing demat account. However, many brokers prefer opening a new demat account as part of their onboarding process.

To sum up

Transferring shares from one demat account to another is a practical step for those seeking better service, more features, or simply a more consolidated portfolio. The process does not require paperwork or branch visits. As long as you verify the details and follow the instructions given on the platform, you can move your shares safely and efficiently.

Want a reliable online share trading app to manage your portfolio and make your next share transfer worry-free? Consider MO Riise by Motilal Oswal. Backed by a SEBI-registered public entity, the app is trusted by more than 40 lakh traders. Besides hassle-free share transfer, you benefit from useful technical analysis tools, high-quality research on stocks, unlimited order placement, a margin trading facility (MTF), and daily stock recommendations.

A detailed FAQ section, UPI-based payments, StoCoMo (an in-app community), and 24/7 assistance make MO Riise one of the best share trading apps you can choose.

Open a demat account online on MO Riise today!