How to Transfer Shares From One Demat Account to Another

You move shares from one demat account to another with an off-market transfer. You can do it online through CDSL Easiest or NSDL SPEED-e, or on paper with a delivery instruction slip (DIS) given to your broker or depository participant. Every transfer needs a reason, such as gift, sale or transfer to your own account, and that reason decides stamp duty and tax.

Key facts

Before you start

Keep these details ready:

• the target demat account number (DP ID and client ID for NSDL; BO ID for CDSL)
• which depository holds the target account, shown on its client master list
• the ISIN and quantity of each share you want to move
• the reason for the transfer and, for a sale, the price and payment details

If you are new to how demat accounts, DPs and depositories fit together, read what a demat account is first.

Online transfer through CDSL Easiest

CDSL offers two levels. A trusted account user can send shares to up to four CDSL demat accounts registered in advance. An “account of choice” user, with a digital signature token, can send to any demat account, including one at NSDL.

1. Register for Easiest on the CDSL website and submit the signed form to your DP, if your broker does not activate it online.
2. Add the target account as a trusted account under Miscellaneous. Zerodha says this takes about 24 working hours.
3. Log in and choose Setup, then Bulk Setup under Transactions.
4. Enter the execution date and target BO ID, then pick the ISINs and quantities under Account ISINs.
5. Click Submit, then Verify, then Commit.
6. Enter the OTP sent to your registered mobile and email, and your Easiest PIN.

Zerodha says requests placed before 6 pm on a trading day are processed the same day.

Online transfer through NSDL SPEED-e

NSDL says password users of SPEED-e can deliver only to up to six pre-notified broker accounts. To send shares to another person’s account, you need the e-Token (digital signature) facility, or your DP’s own online process.

1. Register on SPEED-e and get your DP to activate the login.
2. Open Beneficiary Maintenance, enter the target account, click Validate and Submit, and confirm with the OTP.
3. Create the delivery instruction with the ISIN, quantity, target account and reason.
4. Pay any stamp duty shown. Gifts do not attract it.
5. Approve the consent link sent by SMS or email. Navia, a broker, says this must be done by 10 pm the same day.

Offline transfer with a DIS

If you prefer paper, or your broker does not support online transfers:

1. Ask your broker or DP for a delivery instruction slip.
2. Fill in the target DP ID and client ID, the ISIN, quantity in words and figures, execution date and reason.
3. For a sale, fill in the consideration and payment details. CDSL makes these mandatory for off-market sales.
4. Have every holder sign as per the DP’s records and submit the slip.
5. Approve the OTP request from the depository when it arrives. CDSL made OTP consent mandatory for all off-market transfers from 31 October 2020, following a SEBI circular of 27 August 2020.

NSDL says the transfer happens on the execution date given in the instruction. Any payment between buyer and seller happens outside the depository.

Reason codes and what they mean for tax

Depositories check the reason you choose against the two accounts. CDSL’s reason code list includes these:

Separate codes cover transfers between specified family members and between a minor’s account and the guardian’s account. If you are setting up a portfolio for a child, see our guide to a minor’s demat account.

Gifts

Under the Income-tax Act, 2025, a gift of a capital asset by an individual is not a “transfer” (Section 70(1)(b)), so the giver has no capital gains. The receiver pays no tax on shares received from a relative (Section 92(3)(a)). From anyone else, shares received free are taxable once their total market value in a year exceeds ₹50,000 (Section 92(2)(m)(iii)).

When the receiver later sells, the cost is the giver’s original cost (Section 73), and the giver’s holding period counts too. Income the shares earn may be clubbed with the giver’s income if the receiver is a spouse or minor child.

Off-market sales

A sale outside the exchange is still a sale. The seller works out capital gains in the usual way, on the price declared in the instruction. Our capital gains calculator helps with the figures, and our page on taxation of shares covers the rates. For FY 2025-26 transfers, the matching 1961 Act sections apply. Get professional advice for large or unusual transfers.

Charges

There are three possible costs:

Moving shares between your own accounts

Use the “transfer to own account” reason when both accounts carry your PAN. The DP checks that the holder details match. CDSL asks the DP to check the target account’s client master list when that account is at the other depository. If you are closing the old account, many DPs let you file one closure-cum-transfer request that moves everything to your new account.

Frequently asked questions

How long does an off-market transfer take?

It settles on the execution date in the instruction, once you approve the OTP. Brokers such as Zerodha say requests placed before their cut-off are processed the same day.

Can I transfer shares from CDSL to NSDL?

Yes. This is an inter-depository transfer. Use CDSL Easiest with the account-of-choice facility or a DIS, and give the NSDL DP ID and client ID.

Is stamp duty charged on gifting shares?

No. Stamp duty of 0.015% applies only where there is consideration, and a gift has none.

Do I pay tax on shares gifted by my father?

No. Gifts from a relative are exempt under Section 92(3)(a) of the Income-tax Act, 2025. When you sell, your cost is your father’s original cost.

What happens if I choose the wrong reason code?

The depository system may reject the instruction if the reason does not match the account types. A wrong reason can also cause trouble later if the tax department questions the transfer.

Why did I get an OTP from CDSL or NSDL?

Depositories send an OTP to confirm every off-market transfer from your account. Approve it only if you started the transfer.

Sources

• Easiest — CDSL (checked 17 Sep 2026)
• Mandatory OTP authentication for off-market transfers, CDSL/OPS/DP/POLCY/2020/447 — CDSL (checked 17 Sep 2026)
• Validation of reason codes for off-market transactions — CDSL (checked 17 Sep 2026)
• Off-market transfers — NSDL (checked 17 Sep 2026)
• SPEED-e — NSDL (checked 17 Sep 2026)
• Stamp duty calculator — NSDL (checked 17 Sep 2026)
• Stamp duty FAQs — Clearing Corporation of India (checked 17 Sep 2026)
• Income-tax Act, 2025 (sections 70, 73, 92) — ICAI copy of the Gazette text (checked 17 Sep 2026)
• Transfer shares using CDSL Easiest — Zerodha (checked 17 Sep 2026)
• Transfer shares using NSDL SPEED-e — Navia (checked 17 Sep 2026)