An off-market transfer simply means moving shares directly from one Demat account to another, without involving the stock exchange. These transfers are carried out through depositories like NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited), which oversee the entire process.
When it comes to shifting shares from one Demat account to another, you generally have two main options:
Method 1: Offline transfer using a Delivery Instruction Slip (DIS)
Method 2: Online transfer through the CDSL or NSDL system
Both methods are valid and secure, and which one you choose depends on your preference. The online process is faster and more convenient since it can be done digitally, while the offline method relies on submitting a physical slip (DIS) to your broker or depository participant.
In this blog, we will be focusing on the offline transfer process, as many investors still prefer this traditional approach for private or family-related transactions. Let’s dive deeper into how the offline method works and what steps you need to follow.
Procedure for off market transfer of shares offline
To facilitate the offline off-market share transfer procedure, the following steps should be undertaken:
Step 1: Obtain DIS Slip from Depository Participant (DP)
The selling client must request a Delivery Instruction Slip (DIS) which is called off market share transfer form from their DP to begin the offline off market share transfer procedure smoothly and ensure proper documentation of the transaction.
Step 2: Fill out the DIS slip
Complete the DIS slip with the following details:
- Fill the counter BOID against the respective depository and provide the 16-digit account number, which combines your DP ID and Client ID.
- Fill the counter BO name to whom they are transferring
- Enter the 12-digit ISIN code to confirm the authenticity of the shares. Verify it carefully and specify the quantity of shares.
- Fill in the execution date after confirming with your DP.
Select the transfer type:
- Off-Market Transfer Mode for intra-depository transfers.
- Inter-Depository Option for transfers between different depositories.
- Signatures of account holders (All joint account holders need to sign)
Step 3: Submit DIS slip to selling client’s DP
- The filled and signed DIS slip must be submitted to the selling client’s DP for processing.
Step 4: DP verification and client confirmation call
- The DP will verify the details provided in the DIS slip.
- The DP will make a confirmation call to the selling client to authenticate the transfer request.
- The selling client must answer the confirmation call; the process will not proceed without this step.
Step 5: Notification
After voice confirmation, the DP will process your DIS, and you will receive Mail/SMS to authenticate the transaction by CDSL. Click on the link to validate the off-market share transfer by entering the OTP.
Step 6: Transaction charges
Stamp duty and transaction fees apply:
- Stamp duty: Based on applicable rates (calculated via CDSL's Stamp Duty Calculator).
- Transaction fee: 0.05% of the value or ₹200 per ISIN, whichever is higher.
Timings for off-market share transfers
Online Transfers: 9:00 AM to 5:00 PM.
Offline Transfers: DIS submissions received by 5:00 PM on working days are processed the same day; otherwise, the next working day.
Off-market share transfer online or offline, requires meticulous attention to detail and adherence to regulatory guidelines. While online transfers offer speed and convenience, offline transfers may suit specific scenarios. Ensuring accurate documentation, coordination with the depository participants, and compliance with SEBI norms is essential for a smooth and legally compliant transfer process. By following the correct procedures and coordinating with your DP, you can ensure a seamless and legally compliant transfer process.
Disclaimer: The information provided in our blogs is for informational purposes only and should not be construed as financial, investment, or trading advice. Trading and investing in the securities market carries risk. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. Copyrighted and original content for your trading and investing needs.
© 2025 — Tradejini. All Rights Reserved.
