Transfer Your Shares Effortlessly in 10 Minutes | Demat to Demat Share Transfer with CDSL

Over the last few years, I've opened multiple Demat accounts. I've got shares and mutual funds in different places, and all these are a mess right now. I want to solve this once and for all. I see a lot of people having the same issue, wanting to close their older accounts, shifting to a new broker, or consolidating all their portfolios into a single account. But what is a major problem here? The major thing that people want to know is: how can I shift my holdings in one broker to another without booking my profits or losses and without having to pay any taxes for these book profits at all? So in this Blog, let us discuss how to set up a CDSL Easiest account so that you can transfer your holdings from one Demat account to another. We'll discuss the advantages and disadvantages of the same and go through a step-by-step tutorial. 

Methods for Shifting Demat Account Holdings

When you want to shift your Demat account holdings, there are two methods:

1. Physical Method: This involves you actually taking the DIS slip (the Delivery Instruction Slip) from your broker, somebody taking it and getting your account holdings changed. But this is not an easy method.
2. CDSL Easiest Portal: We'll look into this method.

Setting Up a CDSL Easiest Account

To start the process, first you have to make a CDSL Easiest account. To do that, just go to Google and type in "CDSL Easiest" and click on the first link that comes up. This is the CDSL Easiest login page. Now, I'm assuming you already do not have an Easiest account for the broker which you are transferring from. So for example, let's say you're transferring holdings from a Zerodha account to an IIFL account. You will need to have a CDSL Easiest account in the name of the Zerodha account which you are transferring from.

1. Go to the website, click on the "To Register for Easiest" option, fill in your DP ID and your client ID. This is basically two halves of a Demat account number. It can be found in the profile section of all of the brokers.

2. As you can see here, here's my Demat account number, and the first half of it is my broker's DP ID and the second half of it is my client ID. Copy the first eight digits of the same, make sure the checkbox is ticked, and click on the "Continue" button.

3. On the second screen, enter the OTP which you received on your registered mobile number, which is registered with your broker. Once that is done, go ahead and fill all your required account details as asked.

4. On the bottom here, you will see two options for account type. One is "Account of Choice e-Token" and the second one is "Trusted Account PIN" option.

   • If you're transferring your Demat account holdings from one broker which has a CDSL backend to another broker which is CDSL itself, you have to choose the "Trusted Account" option.
   • If you want to transfer from a CDSL account to a broker which has an NSDL account, you have to choose the "Account of Choice" option.

My requirement is a CDSL to CDSL transfer, so I'm using the "Trusted Account" option here.

5. The first half of the registration is done. It says that your request is forwarded to DP for authentication. It has now requested my broker for authentication, and it will be done very soon.

6. In the second half of the Easiest registration, I have to go ahead and enter my Trusted BOID. This means the account that I want to transfer to. Here I want to transfer my holdings to another broker, so I have to enter the BOID or the Demat account number of that second broker here. I've entered the broker's Demat account number to which I want to transfer to and clicked on submit. I will be receiving a fresh OTP to the registered number of that new Demat account.

7. It shows "Success. Request for mapping trusted account sent to your DP." Now, this stage is all done, let's proceed.

8. In the next grouping section, you can choose to ignore the same. Click on continue, and congratulations! You have successfully registered for the Easiest portal.

9. Now that the registration is complete, go back to the login screen and enter your username and password which you set earlier.

10. Now that you've logged into the Easiest account, click on the "Miscellaneous" option. You'll have to click on the "Change PIN" here and update your PIN. You'll receive a PIN number in the registered email along with the CDSL welcome message or welcome mail. Enter that PIN and register for a new PIN here.

11. The login is done, and you can see all the details here. The DP name is visible, and your trusted account. If you go into "Miscellaneous" and click on "Edit Trusted Account," your earlier added trusted account will also be here. If you want to add multiple accounts, you can do the same by clicking on the "Add Trusted Account" option on the bottom right of the screen.

Transferring Shares

1. If you go into the "Account Details" option, you can see all the shares and mutual funds in your Demat account here. You can see ITC, other mutual funds as well on the list, and the list goes on. It's a two-page list here.

2. Click on the "Transaction" option on the top and click on the "Setup" screen.

3. Go into the "Bulk Setup" option that you see on the bottom left here.

4. Once you select the execution date and the counter BOID, skip the entire process that you see on the screen. Do not try to modify anything. On the second screen, when you're scrolling down, you'll see an option "Entity Identifier." Select the "N/A" option here and do not modify anything else. Click on the plus button to start adding the stocks that you want to transfer.

5. Once this page opens up, click on the "Account ISIN" option. You can see all the listed shares and mutual funds here that you have bought in this current Demat account. Click on the ISIN number on the left side of the share that you want to transfer. Here I'm first selecting the ITC one. You can see the quantity here. Enter the quantity which you want to transfer, select the reason for trade. Here I'm giving "Gift" as an option and do not modify anything else. Click on the OK button so that the ITC stock is added to the list.

6. I'll be adding two more shares of mutual funds that I want to transfer. To do that, click on the plus button again and you can keep on doing this for as many stocks or mutual funds as you want.

7. Select all the shares and securities that you want to transfer, select them on the left side, and click on the commit button. If you're doing this for the first time, you'll be receiving an OTP. Otherwise, you'll just be asked for the transaction PIN here.

8. In the next screen, enter the PIN when you're asked to. As you can see here, authenticated successfully. That means my transactions have been successful. 

Advantages and Disadvantages

Advantages

1. You can collect and consolidate all your broker's holdings in whichever Demat account you please.
2. This process is much easier and takes under 10 minutes.
3. You do not have to book your profits or loss, thereby affecting your tax P&L. You no longer have to pay a tax on earlier profits.

Disadvantages

1. The portal does not work after 5 PM.
2. This method is for CDSL to CDSL transfer only.
3. Brokers might not be enthusiastic about authenticating your transaction since they are losing a customer. Upstox has been known to not authenticate transactions.
4. The average price will not be visible in your new broker. Note down the earlier average price of the stock or security to avoid problems when filing taxes.