How to Sell Unlisted Shares — The DIS Method

When you are ready to sell your unlisted shares, the shares need to be transferred from your Demat account to the buyer's Demat account. Unlike listed shares where your broker handles this automatically, unlisted share transfers require you — as the seller — to do three things before the shares move:

• Pay stamp duty on the transaction.
• Add the buyer as a beneficiary in your depository portal.
• Initiate the transfer via DIS (Delivery Instruction Slip) or online portal.

This chapter covers the DIS method — the offline, paper-based approach. Chapter 3.3 covers the online method via CDSL Easiest and NSDL SPEED-e.

What is a Delivery Instruction Slip (DIS)?

A DIS is a physical form — similar in concept to a cheque — that you submit to your Depository Participant (your broker) instructing them to transfer specific shares from your Demat account to a buyer's Demat account.

Every Demat account holder is entitled to a DIS booklet from their broker. If you do not have one, request it via your broker's customer support. It will be dispatched by post within 5 to 7 business days.

DIS Booklet: Your DIS booklet is issued by your Depository Participant. Each slip has your Demat account details pre-printed. It is a controlled document — treat it exactly like a cheque book. Never sign blank DIS slips.

Step 1 — Pay Stamp Duty (Mandatory, Before Transfer)

Before you fill or submit the DIS, you must pay stamp duty on the transaction. This is a government levy on the transfer of securities. It is the seller's responsibility to pay it.

The current stamp duty rate is 0.015% of the total consideration amount (total sale value).

So if you are selling shares worth Rs. 1,00,000 — stamp duty = Rs. 1,00,000 x 0.00015 = Rs. 15.

For CDSL Demat Holders — How to Pay Stamp Duty

CDSL stamp duty is paid via a bank transfer to CDSL's designated ICICI Bank account. The account number is unique to each Demat holder — it is formed by prefixing 'CDSD' to your 16-digit Demat account number. See the payment details box below.

After making the payment, keep the bank transfer receipt (UTR number) as proof. CDSL reconciles stamp duty payments against your Demat account number, which is embedded in the account number itself.

For NSDL Demat Holders — How to Pay Stamp Duty

NSDL provides an official stamp duty calculator on their website. Use it to calculate the exact amount, then pay via the NSDL portal or as directed by your broker.

NSDL Stamp Duty Payment — How to Calculate & Pay
Current stamp duty rate: 0.015% of the total consideration amount
Formula: Stamp Duty = Total Sale Value x 0.00015
Example: If you sell shares worth Rs. 1,00,000 — stamp duty = Rs. 1,00,000 x 0.00015 = Rs. 15

Use the official NSDL stamp duty calculator to calculate your exact amount before payment:
nsdl.co.in/stampduty_calculator.php

Do Not Skip Stamp Duty: Stamp duty payment is mandatory and must be completed before the share transfer. If you initiate a DIS without paying stamp duty, the transfer may be rejected or you may face compliance issues. Always pay stamp duty first and keep proof of payment.

Step 2 — Add the Buyer as a Beneficiary

After paying stamp duty, you need to add the buyer's Demat account as a beneficiary in your depository system. This is a one-time addition per buyer — once added and approved, you can transfer to that buyer again without re-adding.

For CDSL accounts, log in to easiest.cdsl.in and add the buyer's 16-digit BO ID under Beneficiary Management. New beneficiaries require up to 24 hours for CDSL to approve — this is a security measure.

For NSDL accounts, log in to nsdlspeed-e.com and add the buyer under Counter Party Management. Similarly takes up to 24 hours for approval.

If you are submitting a physical DIS without using the online portal, your broker will handle the beneficiary verification as part of the DIS submission process.

OTP Verification: When adding a new beneficiary on CDSL Easiest or NSDL SPEED-e, you will receive an OTP on your registered mobile number to confirm the addition. This OTP step is a security measure to prevent unauthorised beneficiary additions. Enter the OTP promptly — it typically expires within a few minutes.

Step 3 — Gather Information Before Filling the DIS

What is an ISIN? ISIN stands for International Securities Identification Number. Every share — listed or unlisted — has a unique 12-character ISIN. NSE unlisted shares, Zepto shares, CSK shares — each has its own ISIN. Your platform or intermediary will always provide the correct ISIN for the company being sold.

Step 4 — Fill and Submit the DIS

1. Fill in your Demat account details
   Your DP ID and Client ID are pre-printed on CDSL slips. On NSDL slips, verify the details match your account. Do not alter pre-printed fields.
2. Fill in the buyer's Demat details
   In the Target DP ID and Target Client ID fields, enter the buyer's details exactly as shared. One wrong digit causes the transfer to fail or go to the wrong account.
3. Enter the ISIN and share quantity
   Write the ISIN of the company and the exact number of shares. Double-check — you cannot reverse a completed transfer.
4. Enter execution date and consideration amount
   The execution date is when you want the transfer to happen. The consideration amount is the total sale value. Both are required.
5. Sign the DIS
   Sign exactly as per your Demat account signature. For joint accounts, all holders must sign. Never sign a blank DIS.
6. Submit the DIS to your broker
   Submit physically at your broker's branch or DP service centre. Some brokers accept scanned DIS via email or their app — confirm first. Keep the counterfoil (stub) as your record.
7. Track the transfer
   Your broker processes the DIS and executes on the date mentioned. The buyer's Demat gets credited within T+1 after execution. Verify the debit from your Demat statement.

Common DIS Mistakes to Avoid

Critical Warning: Never sign a blank DIS under any circumstances. This is the unlisted share equivalent of signing a blank cheque. Always fill every field before signing. Fraudsters have misused signed blank DIS slips to transfer shares without the owner's knowledge.

End-to-End Timeline — DIS Method

• Stamp duty payment: same day via bank transfer.
• Beneficiary addition and OTP approval: up to 24 hours for depository approval.
• DIS submission to broker: same day if submitted before cut-off.
• Transfer execution: on the date mentioned in DIS.
• Shares credited to buyer's Demat: T+1 after execution.
• Total time from start to buyer receiving shares: typically 2 to 3 business days.

Key Takeaways

• As the seller, you must complete three things before transfer: pay stamp duty, add buyer as beneficiary (with OTP), and submit DIS.
• Stamp duty is 0.015% of total sale value — CDSL holders pay to ICICI Bank using CDSD + their Demat number as the account number. NSDL holders use the NSDL stamp duty calculator at nsdl.co.in/stampduty_calculator.php.
• OTP verification is required when adding a new beneficiary — check your registered mobile number.
• Never sign a blank DIS — treat it exactly like a signed blank cheque.
• Keep all three proofs: stamp duty receipt, DIS counterfoil, and Demat debit statement.