Can I transfer my share in another demat accounts of my wife?

Yes, you can transfer shares from any account to your account by giving off-market delivery instructions slip to holders DP. There are some minimum charges to transfer the shares.

As you are doing the transfer of shares within a family, so we don’t see any major issue from the income tax department. But in case this is between friend and/or out of family members, you are answerable to the IT department notice.

Second Option

The second option is the first part can sell shares in the open market and almost same time second part can buy shares from the open market. In such a case, you don’t have any issue with income tax department point of view.