How to transfer shares from the other broker to Zerodha?
Shares can be transferred from other brokers to Zerodha in two ways:
1. Closure cum transfer.
In this case, the demat account will be closed, and the securities will be transferred to the Zerodha account. To initiate a closure cum transfer, a closure cum transfer form, should be obtained and submitted to the other broker along with Zerodha Client Master Report (CMR). To get a copy of the Zerodha CMR, see What is a CMR copy and where can I get it? .
- Closure cum transfer process can only be used to transfer shares to the same person. It cannot be used to transfer securities to a different person. If the shares are transferred between joint accounts, the primary and the secondary account holders in the transferee joint account need to be the same sequence as the transferor joint account.
Mr Anil can do a closure cum transfer only to another demat in his name in case of an individual account. If Mr. Anil is a primary holder and Mr Sunil is a secondary holder in a joint account, the shares can be transferred to another joint account where Mr. Anil is a primary holder and Mr Sunil is a secondary holder and not to a joint account where Mr Sunil is the primary holder and Mr. Anil is the secondary holder.
Shares can be transferred only within the same Beneficiary Owner (BO) status,
i.e., shares can be transferred only from an individual account to an individual account. Shares cannot be transferred from an individual account to a joint or NRI or HUF account and vice versa. The BO status can be found on the CMR copy as shown below.
- If the shares are under lock-in period, the shares cannot be transferred from CDSL to NSDL or vice versa using closure cum transfer. See What does Lock-in period mean?
If shares have to be transferred from one demat account to another demat account without closing the demat account, it can be done through off market transfer , as explained below. There are no charges for closure cum transfer across all brokers.
2. Off-market transfer
In the DIS slip received from the other broker, enter the details of the Zerodha demat account as required and submit it to the other broker.
- If the other broker’s depository is NSDL, use inter depository slips, if it is CDSL use intra-depository slips. Both slips are provided by the other broker.
- Only shares that aren’t under the lock-in status can be transferred using off market transfer.
- Transfer charges are applicable as per transferor Depository Participant (DP).
Some brokers allow online transfer of shares. Please contact the other broker to know their process for the transfer of shares. To know how to transfer shares online from your Zerodha account, see How can I transfer shares from my Zerodha account using CDSL Easiest?