How to transfer stocks, other investments from one stock broker to another

An investor can switch from one stockbroker to another for a variety of reasons such as the services offered, the ease of doing transactions, the brokerage or research services offered. To keep a single trading and demat account, it will be necessary to transfer the existing assets to the new demat account and close the current account by following the process below.
  • Open a new demat and trading account

Once the new broker is finalized, the account can be opened by using the broker portal and filling out an online form with the basic details. Then the KYC documents must be uploaded for verification and a video verification of the applicant is performed. Once the OTP verification is completed, the account is opened.

  • Transfer of assets with the same custodian

Whether new and old brokers are registered under the same custodian, ie. or NSDL respectively, the transfer can be made online by the investor himself. This can be done by registering on the easiest CDSL platform for CDSL accounts.

  • Transfer of holdings with different custodians

In case the existing DP is registered with NSDL and the new DP is registered with CDSL, the investor must complete a debit instruction slip (DIS) to the existing DP to transfer the securities as indicated in the form. This transfer can take up to two days. Once the holdings are transferred, the investor can withdraw the money from the trading account and place a closing instruction. All demat account holders must sign the closing form. It takes about a week to close the old account.

Point to note

  • It is important to understand the brokerage plans and other fees charged by the new broker before deciding to switch.

(The content on this page is courtesy of the Center for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava, and Labdhi Mehta.)

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