We all have been in situations where we’ve spent several hours searching for the right gift for an occasion. Choosing a meaningful gift is never easy. One of the things we’ve wanted to do at Zerodha for a long time was to make gifting stocks, mutual funds, and bonds easier, but making the process seamless and online wasn’t possible. The only way to gift stock was to execute an off-market transfer by filling up a physical delivery instruction slip (DIS) and then sending it to us to complete the transfer.
But thanks to the recently introduced CDSL’s e-DIS (Electronic delivery instruction slip), we now have built a platform to gift stocks, ETFs, and gold bonds to your friends and loved ones in a few easy steps. We’ll soon enable gifting of mutual funds and gifting to minors (<18 years).
We think stocks and ETFs are the perfect gifts for most occasions, and they are quite literally gifts that keep on giving. They are also a great way to introduce your friends and family to investing and capital markets and in turn, help in the financialization of our country.
With this in mind, we’ve made gifting stocks as easy as it gets. 🙂
How to gift
- Head over to the stock gifting page on Console
- Enter your friend’s name and/or email address and click on “Continue”.
- Select the stock(s) you wish to gift and enter the quantity.
- Click the “Confirm & send” button. The recipient will receive an SMS and email with the details of the gift.
- You can also share your unique gift link by copying it from the history section.
- Once the recipient has accepted the gift, you will receive an email and SMS notification from Zerodha asking you to verify the details of the recipient and approve the stocks to be transferred from your demat to the recipient using the CDSL TPIN. If the recipient doesn’t have a Zerodha account, the account can be opened in a few minutes, and he or she can then accept the gift.
- After you have approved the debit of stocks using the CDSL TPIN, Zerodha will set up an off-market gift transaction at CDSL which you need to verify using an OTP sent by CDSL. Shortly after the off-market gift transaction is set up by Zerodha, which happens at 5 PM on every trading day, you’ll receive an email and SMS from CDSL with this link to verify the transaction through an OTP. You will be required to enter your PAN or 16 digit DP ID and generate the OTP. The OTP verification has to be done by 8 PM on the same day.
- On successful verification of the gift transaction, the stocks are transferred from your demat account to the recipient’s demat account.
- To calculate the P&L and buy averages, the gift trade will be entered at the previous closing price available of the stock on the day the transfer. The holding transferred by the sender of the gift will be closed at the previous closing price of the stock, and the average price for the receiver of the stock will be the same closing price of the stock.
- There are no additional charges for gifting. Off-market transfer charge of Rs. 25/- or 0.03% whichever is higher is applicable for these transfers.
- There will be no tax implication for the sender of the gift. However, there could be taxes on the receiver if the gift received is more than Rs 50,000. Check this article to know more.
You can also check out these support articles for more:
The next time you’re looking for a gift, you know what to do. 🙂
From all of us here at team Zerodha, wishing you all a happy and prosperous Diwali! 🪔