Home/Blogs/Know How the Online Broking Account Transfer Process Works

Know How the Online Broking Account Transfer Process Works

Opening broking accounts online has become a fairly simple and streamlined process.As simple as the process may now be, you may want to move your online demat account from one broker to another instead of opening multiple accounts with different brokers. This would entail opening a new account with a new broker and ensuring the closure of your existing account. The need to change brokers may arise out of economical concerns, access to better service and features, customer care, etc. Whatever the reason, here is a short guide on how you can transfer shares from one broker to another.

  • Who holds your shares?

To understand how transfer of shares between brokers occurs, it is important to know how shares are held in demat accounts. There are two central electronic depositories where stocks are stored after purchase - National Securities Depository Limited (NSDL) and Central Depositories Services Limited (CDSL). Both these share depositories are registered with the Government of India. Due to the volume and variety of shares being traded in the stock market, there is a secondary network of depositories set up between the central depositories and traders, known officially as Depository Participants (DPs). All brokers must be registered DPs as mandated under SEBI. The ultimate custodian of all the shares deposited in out demat accounts is either the NSDL or the CDSL.

Now that we understand the back end of share demat share custody, it becomes easier to understand how individual cases of share transfers between brokers work.

  • Transferring brokerage account between DPs linked with the same central depositories

When shares are being transferred between two brokers that are registered with the same central depository, the process is straightforward. No additional permissions are required. Before closing the existing demat account, ensure that outstanding dues are cleared and open F&O positions in the market are closed.

  • Transferring brokerage account between DPs linked with different central depositories

Transferring shares between brokerage accounts linked with different central depositories required the submission of a DIS or Debit Instruction Slip to your existing broker. The transfer process can take up to two business days. Once the transfer is complete, you must ensure that your existing brokerage account is closed. A stamped acknowledgment stating the same must be procured from your old broker.

  • Outstanding Debits and Credits

You should have no outstanding dues at the time of closing your existing brokerage account. Service fees, commissions and maintenance charges payable to your broker should be cleared. In case any credit is due from the sale of shares, shares are due to be deposited to your demat account after a buy order has been posted. It is best to wait till all dues owed by you and to you are settled before you transfer shares to a different brokerage account. In the event amounts or shares due to you are not settled by the broker, you must intimate the broker of the same at the earliest. Oftentimes, credit is withheld against dues owed by the account holder to the broker. If that is not the case, and the broker continues to withhold credit, you can file a complaint with the central depository they are registered with.


Central regulatory authorities are working toward easing the process of opening, closing and moving online broking accounts in a bid to encourage investors to put more money in the stock market. If you are dissatisfied with the services being provided by your broker, you can change brokers swiftly provided (i) outstanding dues are settled (ii) open F&O positions are closed (iii) in case of moving to a DP linked to a different central depository, a DIS is submitted.

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account

You may also like…

Be the first to read our new blogs

Intelligent investment insights delivered to your inbox, for Free, daily!

Open Demat Account
I wish to talk in South Indian language
By proceeding you’re agree to our T&C