Off Market Transfer

An off-market transfer is a way of transferring shares directly between two parties without the involvement of a stock exchange.

If you wish to transfer some or all shares held in your demat account to the demat account of someone else, it is called an off-market transfer. The gift of shares to your family members is one of the examples of an off-market transaction.

Steps for the off-market transaction of shares in India

1. Submit an electronic Delivery Instruction Slip (e-DIS) or submit a paper Delivery Instruction Slip (DIS) to your broker.
2. On the execution date of the off-market transfer instruction, a link is generated and sent by NSDL or CDSL on the mobile number and e-mail ID as registered in the demat account of the client (sender).
3. On clicking the link, the client is redirected to a web page where, after authentication, the client sees details of off-market transfer instructions which are pending confirmation.
4. If the details are seen are correct, the client may proceed with the instruction by generating OTP. OTP is sent to the client's mobile number which is registered in the demat account.
5. On OTP confirmation, Off Market Transfer instruction(s) is processed.

Clients need to ensure that the correct mobile number and email ID are registered in the demat account. Clients must contact their DP immediately in case there is any change in the same.

Answered on 2022-01-08