An off-market transfer is a transfer of shares directly from one demat account to another, settled outside any stock exchange. Because unlisted shares do not trade on the NSE or BSE, every unlisted-share purchase is an off-market transfer, executed when the seller submits a DIS quoting the buyer's BO ID and the ISIN.
Why it matters to you
Off-market transfers carry no exchange-guaranteed settlement, so payment and delivery are not automatically linked. This is exactly where buyers get defrauded — paying before receiving shares, or vice versa. Use a platform that escrows funds and sequences delivery, and always reconcile the ISIN and quantity on receipt.
Example: A buyer released payment only after the shares showed up in their demat holdings, avoiding a common advance-payment scam. Related: how to sell unlisted shares in India.