It is possible to open multiple Demat accounts for various purposes, including broker comparisons and strategy testing. Therefore, if you have multiple Demat accounts, you must know how to transfer shares between them. Let us understand further about transferring shares. 

Transferring shares from one Demat account to another

A transfer of shares from one Demat account to another Demat account is possible. It makes it easier to consolidate shares, giving a shareholder easy access to seeing all of his shares at once.

Why should you transfer shares?

Possible reasons for transferring shares from one Demat to another include:

• To streamline management by consolidating all shares under one organisation.
• The investor wants to switch out the present depository participant for a new one that provides better returns at a cheaper cost.
• Unfavourable results with the prior broker
• If you want to change from a bargain broker to a full-service broker.

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Inter-Depository Transfer

An inter-depository transfer is when securities are moved from one depository’s account to another. An inter-depository transfer is quite similar to bank transfers. Here are a few things that you should keep in mind while going for Inter Depository transfers: 

• Only securities that are eligible for dematerialisation on both depositories are acceptable for use.
• The NSDL account is a beneficiary account or a clearing account.
• The clearing member/beneficial owner must submit the “Inter-depository delivery instruction” form to its DP to debit the clearing account or the beneficial account with NSDL.
• The standing instruction provided for automatically crediting the account is effective for crediting the clearing or beneficial accounts. 
• The clearing member/beneficial owner must submit the “Inter-Depository Receipt Instruction” form to its DP if the standing instructions are not provided.
• Since both depositories are interconnected, batches for inter-depository transfers are currently transferred every working day.
• Inter Depository Transfer delivery/receipt instructions must be verified and released by DPs by 6 p.m. on weekdays and 2.30 p.m. on Saturdays.
• Both depositories notify the Issuer/Registrar & Transfer Agent of the transfer, and the Issuer/Registrar & Transfer Agent updates its records.
• This facility does not permit the transfer of government securities between depository institutions.

Can you transfer shares from CDSL to NSDL?

Yes, you can transfer the shares from CDSL to NSDL using the CDSL Easiest service or manually submitting a physical Delivery Instruction Slip.

A digital signature certificate that costs Rs. 2,250 + taxes is necessary for the inter-depository transfer utilising CDSL Easiest. However, for intra-depository transfers, CDSL’s Easiest facility is practical. As a result, transferring the shares via offline means is recommended while doing a one-time transfer from CDSL to NSDL.

How to transfer shares from CDSL to NSDL?

Follow the given steps to transfer shares from CDSL to NSDL 

• Fill out the Depository Information Slip (DIS) using the current booklet or get one from the broker/DP.
• Make sure to choose Inter-depository transfer.
• Select Off-market as the market type.
• Enter the beneficiary’s Client ID and DP ID.
• Enter the required information for the transferable stock, including the ISIN, Security name, and Quantity.
• Sign the DIS.
• Send the DIS to your depository participant or broker.

Within 2 to 5 business days, the DP or broker will finalise the transfer.

Conclusion 

Through this blog’s columns, you must know that you can move shares between CDSL and NSDL Demat accounts. However, you must select “Inter-Depository” as the transfer mechanism when transferring shares across depository locations.

It should be noted that the securities you are transferring must be dematerialized on both depositories.