In financial investment and capital markets, specialized learning techniques are required. While everyone will tell you the right tips and tricks for investing in stocks, have you ever wondered how to transfer shares from one demat account to another?
Share transfers from one person’s or organization’s account to another can be complicated, especially when dealing with shares in non-performing companies, inoperative, and established companies such as Reliance Industries Ltd. (RIL).
Before understanding the process, here are a few terms you should remember:
- Demat Account: Dematerialized (Demat) accounts are electronic accounts that hold shares and securities in digital form, eliminating the need for physical share certificates.
- Inactive Companies: Inactive companies have ceased operations or are not actively trading on the stock exchange. Selling the shares of such companies can be more difficult.
- Transfer Deed: A transfer deed is a legal document to transfer an interest from one person to another. It must be formatted and signed.
- Deposit Participant (DP): A DP is an intermediary who helps facilitate the transfer of shares to your Demat account.
Investing in shares is a common way to secure your financial future. After understanding the basic terms, if you want to transfer your shares to someone, it is essential to get the basics right. This step-by-step guide will help to guide you through the complex process and aid in planning your transfers better.

Understanding Non-Performing Company Shares
Before delving into the process of transferring these shares, it is essential to understand the shares of a passive company. Non-performing company shares refer to shares of companies that are no longer actively operating or have ceased operations. These shares are often dormant and can be difficult to value. Non-performing shares can be from companies that went bankrupt, merged with others, or stopped trading on the stock market.
Understand the Basics of Share Transfer
Before diving into the specifics of transferring your shares, it is essential to understand the basics. Shares represent company ownership and can be transferred from one party to another in exchange for rights. Shares are held physically or electronically (demat), the latter being the most common today.

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How To Transfer Shares From A Demat Account to Another
Inactive company shares are held by companies that are no longer active or have ceased trading. Moving these parts requires special attention to detail. Here is a complete step-by-step guide to help you out.
Step 1: The first step is to gather all the documents. Below are the documents you need to start transferring.
- Original share certificates.
- A copy of the deceased shareholder’s death certificate (if applicable)
- A copy of the certificate of legal successors (if applicable)
- Indemnity bond with a non-judicial stamp.
- Affidavit of legal successors
Step 2: The next step is to notarize all the necessary documents. Have the indemnity bond and affidavit filed in evidence.
Step 3: Identify the company registrar and transfer agent (RTA) responsible for the transfer of shares. Submit the labeled forms to the RTA along with the transfer request.
Step 4: In the next step, you must pay the transfer fee per the company’s guidelines. This is an important step.
Step 5: The RTA will review your application, and once approved, the shares will be transferred to your demat account.
Transfer Shares of Reliance Industries Limited (RIL)
RIL is a big company, and transferring its shares is relatively straightforward. Below are the easy steps you need to follow:
1) Open a demat account: If you do not already have a demat account, open one with a registered deposit account (DP). Learn how to open a demat account.
2) Update KYC: Ensure your KYC (Know Your Customer) details are updated with your DP.
3) Initiate the transfer: Contact your DP for a share receipt.
4) Fill out the transfer form appropriately, giving specific details of the RIL shares you wish to transfer.
5) Submit documents: Along with the form, submit copies of your demat account statement and the original share certificates of RIL.
6) Pay transfer fees and await confirmation: Pay the applicable transfer fees as per your DP’s fee structure. The DP will process your request, and upon approval, the RIL shares shall be credited to your demat account.
Handling Specific Scenarios
There are a few specific scenarios that may apply when transferring shares:
- Inheritance: If you inherit shares, follow the legal procedures and provide the required documents, including the will and succession certificate.
- Gifts: When transferring shares as a gift, submit a gift deed, relevant forms, and your PAN card.
- Minor’s Account: If the shares belong to a minor, appoint a guardian and provide documents like birth and guardianship certificates.
Important Considerations
- Legal Property: If you inherited your father’s share, have the documents you need to prove ownership.
- Tax Implications: Know the tax implications associated with share transfers. If necessary, consult with a tax advisor.
- Awareness: Check the transfer process and follow up with your DP for any delays or problems.
- Non-Performing Companies: Finding a buyer for these shares can be difficult for non-performing companies. Be prepared for the possibility of little or no cost.
- Designated Nominee Facility: Consider establishing a beneficiary for your demat account to facilitate the transfer of assets in the event of your death.
Transferring RIL shares and shares in non-performing companies to your demat account is a smart move to dilute your investments. Although the process may seem complicated, it can be done by following the steps outlined in this guide above.
Remember to keep accurate records, allow for changes, and be patient during the move. Once completed, you can manage your investments securely and electronically, ensuring they are safe and easy to sell.
Read more: How Long-term investing helps create life-changing wealth – TOI.
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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.