How to Transfer Unlisted Shares Between Demat Accounts

# How to Transfer Unlisted Shares Between Demat Accounts

Whether you're selling to another investor, gifting shares to a family member, or consolidating holdings across two demat accounts, unlisted share transfers all happen the same way: via an **off-market DIS transfer**. Here's the complete process.

Note: This article covers the technical transfer process. If you're selling shares (exchange of shares for money), see our guide on How to Sell Unlisted Shares in India.

What Is a DIS (Delivery Instruction Slip)?

A DIS is a formal instruction you give to your Depository Participant (your broker — Zerodha, Groww, HDFC, etc.) to move specified shares from your demat to another demat account.

Think of it like a cheque — except instead of money, it moves shares. The key difference: a cheque can bounce; a DIS can be rejected by your DP if the details are wrong.

What Information You Need Before Starting

Have these ready before you fill out the DIS:

| Field | What to Enter | |---|---| | ISIN | 12-character code of the share (e.g., INE256A01028) | | Quantity | Number of shares to transfer | | Execution date | Date on which you want the transfer to execute | | Recipient's BO ID | 16-digit CDSL number, or DP ID + Client ID for NSDL | | Depository | CDSL or NSDL (must match the recipient's demat) | | Reason for transfer | "Off-market sale" or "Gift" |

The recipient's BO ID is the most important field. A single wrong digit means the shares go to the wrong account. Verify it directly from the recipient's CMR or demat statement.

Process: Physical DIS

Most DPs issue a DIS book (like a chequebook) when you open the account.

1. 1Fill out the DIS form completely in ink — no corrections or overwriting allowed
2. 2Sign exactly as registered with your DP
3. 3Submit the physical DIS at your DP's branch or by registered post
4. 4The DP processes it on or after the execution date
5. 5Shares are transferred within T+2 working days from the execution date

Stamp duty: 0.015% of transfer value is deducted by your DP. On a transfer of ₹10 lakh, stamp duty = ₹150.

Process: e-DIS (Electronic — Most Brokers Now Support This)

Most modern brokers have moved to e-DIS, which can be done from your phone or laptop.

For CDSL accounts (most retail brokers):

1. 1Log into your broker's app → Go to Holdings
2. 2Select the unlisted share ISIN → Tap "Transfer / Off-market Transfer"
3. 3Enter recipient's BO ID, quantity, and execution date
4. 4Authorise using your T-PIN (Transaction PIN) — your DP sends an OTP for additional authentication
5. 5The instruction is submitted electronically; no paper needed

For NSDL accounts:

1. 1Log into your broker's portal → Off-market Transfer section
2. 2Fill in DP ID + Client ID of recipient, ISIN, quantity
3. 3Authenticate with OTP or TPIN

CDSL to NSDL (Inter-Depository Transfer)

If the sender is on CDSL and the recipient is on NSDL (or vice versa), use the inter-depository delivery instruction form. The process is the same as intra-depository, but:

• Select "Inter-depository transfer" as the transfer type
• The recipient's details are their NSDL DP ID + Client ID (not a CDSL BO ID)

The transfer route goes: Sender's CDSL demat → CDSL → NSDL → Recipient's NSDL demat.

Timeline

| Step | Timing | |---|---| | DIS submitted | Day 0 | | DP validates and processes | Same day or next business day | | Shares leave sender's demat | T+1 | | Shares credited to recipient's demat | T+2 working days |

If the execution date on the DIS is a Saturday, Sunday, or market holiday, execution moves to the next business day.

What to Do After the Transfer

Sender: Check your demat statement after T+2 to confirm the shares have left your account. Keep the DIS acknowledgement as proof.

Recipient: Check your demat statement after T+2 to confirm receipt. The shares will appear under your holdings with the same ISIN. The acquisition date for capital gains purposes is the date the shares were originally bought (not the transfer date) — carry your original purchase invoice.

Common Mistakes

• Wrong BO ID: Always copy-paste or manually verify digit-by-digit from the recipient's CMR
• Execution date in the past: DIS with a past execution date is rejected — use today or a future date
• ISIN mismatch: The ISIN on the DIS must exactly match what's in your demat
• Signing error: Signature must match your DP records; corrections or overwriting invalidate the form

*For Polemarch-facilitated transfers, our ops team guides you through the DIS process step by step. Contact [email protected] for assistance.*