We have all been in situations where we have spent many hours searching for the perfect gift for an occasion. Choosing a good gift is never easy. For a long time, one of the things we wanted to do in Zerodha was to easily gift shares, mutual funds and bonds. But it was not possible to make the process seamless and online. The only way to gift stock was to fill out a physical delivery instruction slip (DIS) and execute an off-market transfer and then send it to us to complete the transfer.
But thanks to the recently introduced CDSL’s e-DIS (Electronic Delivery Instruction Slip), we have now created a platform to gift stocks, ETFs and gold bonds to our friends and loved ones in a few easy steps. We will soon be able to deposit mutual funds and give gifts to minors (<18 years).
We think stocks and ETFs are the perfect gift for most occasions, and they are truly gifts that keep on giving. They are a great way to introduce your friends and family to investment and capital markets and in turn, help in the financialization of our country.
With this in mind, we have made gift giving stock as easy as possible. 4
How to gift
- Visit the stock gifting page on the console
- Enter your friend’s name and email and click “Continue”.
- Select the stock you want to gift and enter the quantity.
- Click on 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 Xeroda, which will allow you to verify the recipient’s details and to approve the shares to be transferred from your demat to the recipient using CDSL TPIN. Will ask for If the recipient does not have a Zerodha account, the account can be opened within a few minutes, and can accept the gift.
- After CDSL approves the debit of shares using TPIN, Zeroda will set up an off-market gift transaction in CDSL that you must verify using the OTP sent by CDSL. Soon after Xeroda sets up an off-market gift transaction, which takes place at 5 pm on each trading day, you receive an email and SMS from CDSL with this link to verify the transaction via an OTP Will happen. You will have to enter your PAN or 16 digit DP ID and generate OTP. OTP verification can be done on the same day until 8 pm.
- On successful verification of the gift transaction, the stocks are transferred from your demat account to the demat account of the recipient.
- To calculate P&L and buy average, the gift trade will be made available at the previous closing price of the stock on the day of transfer. Holdings 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 is no additional charge for gifting. Off-market transfer charge Rs. 25 / – or 0.03% whichever is higher will be applicable for these transfers.
- There will be no tax implications for the sender of the gift. However, the receiver may be taxed if the gift exceeds Rs 50,000. See this article to know more.
You can also refer to these support articles for more information:
The next time you are looking for a gift, you know what to do.
On behalf of all of us at Team Zeroda, Happy Diwali to all of you!