How Does Off-Market Transfer of Shares Between Demat Accounts Work in India?

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When Is an Off Market Share Transfer Demat Used?

An off market share transfer demat instruction is used whenever you need to move securities between demat accounts without buying or selling through an exchange. Common scenarios for this transfer include: gifting shares to a family member, consolidating multiple demat accounts into one, transferring shares as part of an estate to a nominee or legal heir (after the DP processes a transmission), or moving securities between your own accounts at two different depository participants.

An off market share transfer demat is also used when a company does a rights issue renunciation (selling the right to subscribe to another person) and in certain corporate restructuring scenarios. Unlike an exchange trade, an this transfer has no counterparty price or market involvement; the transferor and transferee agree on the terms independently.

How to Initiate an this transfer

To initiate an off market share transfer demat, the transferor must obtain the beneficiary's complete demat account details before submitting the instruction.

1. Collect beneficiary details: Obtain the beneficiary's DP ID (8 characters), Client ID (8 characters), name as registered with the DP, and depository name (NSDL or CDSL).
2. Obtain and fill the DIS or e-DIS: Obtain the Delivery Instruction Slip from your DP or initiate an e-DIS through the DP's portal. Fill in the ISIN, quantity, beneficiary account details, ISIN name and purpose of off market share transfer demat.
3. Submit to DP: Submit the completed DIS to your DP's branch or authenticate the e-DIS online using your TPIN or OTP.
4. DP verification: Your DP verifies the instruction details including the beneficiary's account. An incorrect beneficiary account number will cause the off market share transfer demat to fail.
5. Execution: The DP debits the specified securities from the transferor's account and initiates the credit to the beneficiary's account. The transferee's DP credits the securities to the beneficiary's demat account.
6. Confirmation: Both the transferor and transferee receive confirmation from their respective DPs when the off market share transfer demat is complete.

this transfer: Key Rules and Restrictions

An off market share transfer demat must follow certain rules.

Rule	Detail
Lock-in restriction	Shares under a lock-in period (ESOP, IPO lock-in) cannot be transferred via off market share transfer demat during the lock-in
Pledged shares	Pledged shares cannot be transferred via off market share transfer demat until the pledge is released
Stamp duty	Stamp duty applies on off market share transfer demat in most states (calculated as a percentage of the market value)
DP charges	Standard DP transaction charges apply to the off market share transfer demat (usually per ISIN per transfer)
No reverse automatically	Once an off market share transfer demat is submitted and processed, it cannot be reversed automatically; a new transfer instruction must be raised

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Charges for an this transfer

An this transfer incurs DP transaction charges on the transferor's side. These charges vary by DP but are typically a flat fee per ISIN per instruction or a percentage of the transaction value, subject to a minimum charge. Check your DP's current tariff sheet for the applicable this transfer charge.

Stamp duty is an additional cost for an this transfer. The stamp duty rate varies by state and is typically a percentage of the market value of the securities being transferred. Since stamp duty applies to the market value, it can be significant for large-value this transfer instructions.

Errors That Can Occur in an this transfer

The most critical error in an this transfer is entering incorrect beneficiary account details. If the DP ID, Client ID or depository name is wrong, the securities may fail to credit to the intended beneficiary. In some cases, they may credit to an unintended account, making reversal extremely difficult.

Before submitting any this transfer instruction, verify the beneficiary's details by downloading their demat account holding statement or NSDL/CDSL account summary from the beneficiary's DP. Never rely on verbally communicated account numbers for an this transfer.

this transfer Through Univest

Univest is a SEBI-registered platform (SEBI RA Reg. No. INH000013776) linked to NSDL. For this transfer instructions involving a Univest account, contact Univest support at univest.in for the current DIS or e-DIS process. Whether you are transferring shares out of your Univest account or receiving shares from another demat account, the this transfer process follows NSDL's standard operational guidelines.

Provide complete and verified beneficiary details to Univest before initiating an this transfer. Double-check the NSDL DP ID and Client ID against the beneficiary's official account confirmation to prevent transfer errors.

Conclusion

An this transfer moves securities directly between two demat accounts without exchange involvement. It is used for gifting, inheritance, account consolidation and inter-account transfers. The this transfer process requires accurate beneficiary details, a valid DIS or e-DIS, and carries DP charges and stamp duty. Verify all beneficiary details before submitting any this transfer instruction, as errors are difficult to reverse after processing.

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Frequently Asked Questions

What is an off market share transfer demat?

Ans. An this transfer is a direct movement of securities from one demat account to another without going through a stock exchange. It is used for gifting shares, inheritance, consolidating accounts or moving securities between your own accounts at different brokers. The this transfer requires a DIS or e-DIS submitted to the transferor's DP.

What details do I need for an off market share transfer demat?

Ans. For an this transfer, you need the beneficiary's DP ID (8 characters), Client ID (8 characters), name as registered with the DP and the depository name (NSDL or CDSL). Also specify the ISIN, quantity and purpose. Verify all details before submitting the this transfer instruction.

Are there charges for an this transfer?

Ans. Yes. An this transfer incurs DP transaction charges (flat fee per ISIN or percentage of value, depending on the DP) and stamp duty (percentage of market value, varies by state). Check your DP's current tariff sheet for the applicable this transfer charges before initiating the instruction.

Can I transfer pledged shares through an this transfer?

Ans. No. Pledged shares cannot be transferred via this transfer until the pledge is released. Shares under a lock-in period (such as ESOP or IPO lock-in) also cannot be transferred via this transfer during the lock-in. Release the pledge first, then initiate the this transfer.

What happens if I enter wrong details in an this transfer?

Ans. If incorrect beneficiary details are entered in an this transfer instruction, the transfer may fail (if the account does not exist) or, more seriously, credit to an unintended account (if the account details match another investor). Once processed, reversing an this transfer is extremely difficult. Always verify beneficiary details from official sources before submitting.

How long does an this transfer take?

Ans. An this transfer is typically processed within one to three business days after the DP receives and verifies the DIS or e-DIS instruction. Both the transferor and transferee receive confirmation from their respective DPs once the this transfer is complete. Online e-DIS based instructions are usually processed faster than physical DIS submissions.