Short answer: Shares in India are held electronically in demat accounts, and a transfer moves them from one such account to another. If the same person owns both accounts, ownership does not change, because a demat-to-demat transfer is not a sale. The route you use depends on whether both accounts sit under the same depository and whether you submit your instruction on paper or online.
Last reviewed: 14 November 2026
At a glance
| Type or step | What happens | What is needed |
|---|---|---|
| Demat-to-demat transfer | Securities move electronically between two accounts and are not sold | Two demat accounts |
| Intra-depository transfer | Both accounts sit under the same depository, such as NSDL to NSDL or CDSL to CDSL | Both accounts under one depository |
| Inter-depository transfer | One account is with NSDL and the other with CDSL | Correct DP ID, Client ID and ISIN in the instruction |
| Offline route | You fill in a Delivery Instruction Slip and submit it to your current broker or depository participant | A completed Delivery Instruction Slip (DIS) with target details |
| Online route | You use depository-run facilities | CDSL Easiest for CDSL accounts; NSDL Speed-e or NSDL online routes for NSDL accounts |
What is a demat account?
A demat account is an electronic account that holds shares and other securities, much as a bank account holds money. Instead of share certificates on paper, your holdings are recorded as entries in this account. The depository is the institution that keeps these electronic records, and the depository participant (DP) is the intermediary, usually a broker or bank, through which your account is operated.
In India, the two depositories this article covers are NSDL and CDSL. Each holds its own set of demat accounts, and each has its own online facilities.
Does a transfer change who owns the shares?
Not when the same person owns both accounts. A demat-to-demat transfer moves securities electronically between accounts, and it is not a sale. The shares are simply recorded in a different account under the same owner.
This matters because people often assume any movement of shares is a trade. A transfer is a change of location in the records, not a change of hands between two people. The catch is that a transfer does not, by itself, settle a price or a payment. If money changes hands, that is a separate transaction.
What is the difference between intra- and inter-depository transfers?
An intra-depository transfer happens when both demat accounts sit under the same depository, for example NSDL to NSDL or CDSL to CDSL. The two accounts belong to the same system, so the instruction needs only the details of the accounts involved.
An inter-depository transfer happens when one account is with NSDL and the other is with CDSL. Because the two depositories keep separate systems, the instruction must carry the correct DP ID, Client ID and ISIN. The DP ID identifies your depository participant, the Client ID identifies your account with that participant, and the ISIN is the 12-character code that identifies the particular security.
The catch with inter-depository transfers is that each of these three codes must be right. An error in any one of them means the instruction points at the wrong account or the wrong security. Checking the codes against your account statement before submitting is the simplest way to avoid that.
How does the offline route work?
The offline route uses a Delivery Instruction Slip, or DIS. This is a paper form on which you enter the details of the shares to be moved and the target account. You sign it and submit it to your current broker or depository participant, who then processes the transfer.
The offline route depends on your intermediary. You hand over the slip and rely on the broker or DP to enter it correctly. A mistake on the form, such as a wrong target account, is only caught when the transfer is processed, so it is worth checking every field before you submit.
How does the online route work?
The online route relies on facilities run by the depositories themselves rather than on a paper slip. For CDSL accounts, the facility is called Easiest. For NSDL accounts, the options are Speed-e or NSDL’s other online routes.
Online routes let you start the instruction without handing a form to a counter. The same accuracy rules still apply, because the system needs the correct account and security details. The online route removes paper, but it does not remove the need to check the target details yourself.
What does a worked example look like?
This is a hypothetical example, with invented figures for illustration only. Suppose an investor holds 100 shares of a company in an NSDL account, valued at Rs 50 per share. The total holding is 100 × Rs 50 = Rs 5,000.
If the same investor moves all 100 shares to their own CDSL account, the holding after the transfer is still 100 shares, still worth Rs 5,000 at Rs 50 per share. The number of shares and their value do not change. Only the account in which they are recorded changes.
What are the main risks to check?
The main risks are procedural, not financial. A transfer does not change the shares, but a wrong code or a wrong account can send the instruction to the wrong place. Inter-depository transfers carry the most detail, because the DP ID, Client ID and ISIN must all be right.
The offline route also depends on the accuracy of a paper form and on the broker or DP processing it. The online route depends on the depository facility you use. In either case, comparing the final holdings in your account statement with what you intended is the simplest check.
Frequently asked questions
Is a demat-to-demat transfer the same as selling shares?
No. A demat-to-demat transfer moves securities electronically between accounts and is not a sale. When the same person owns both accounts, ownership does not change.
What is the difference between an intra-depository and an inter-depository transfer?
An intra-depository transfer happens when both accounts are under the same depository, such as NSDL to NSDL. An inter-depository transfer happens when one account is with NSDL and the other is with CDSL, and it needs the correct DP ID, Client ID and ISIN.
What is a Delivery Instruction Slip?
A Delivery Instruction Slip, or DIS, is the form used in the offline route. You fill in the target details and submit it to your current broker or depository participant.
Which online facilities are used for transfers?
CDSL’s Easiest is used for CDSL accounts, and NSDL’s Speed-e or NSDL online routes are used for NSDL accounts.
Sources and last check
Facts in this article were checked against the sources below on 14 November 2026. Rules and figures can change; check the primary source before acting.
- icicidirect.com (broker education)
- upstox.com (broker education)
- groww.in (broker education)
This article is general information, not investment advice. MyFinanceBandhu is not a SEBI-registered investment adviser.