Home/ Money / Personal Finance/  How to gift stocks, ETFs, gold bonds to friends and family online?

Gifting a financial product can be a great way to introduce your friends and family to investing and capital markets. Zerodha, the largest stock broker in the country, has launched a new facility to allow gifting stocks, exchange traded funds (ETFs), and gold bonds online through their portal. "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," says the release by the company.

Gifting stocks was allowed earlier as well, but through the offline mode. 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 the broker to complete the transfer.

Recently introduced, CDSL’s e-DIS (Electronic delivery instruction slip), allow to gift stocks, ETFs, and gold bonds to your friends and loved ones online.

Zerodha aims at enabling gifting of mutual funds and gifting to minors (less than 18 years of age) soon.

Gifting of stocks, ETFs, gold bonds is as simple as logging in to your Zerodha Account, entering the name of the recipient of the gift, selecting stocks with quantity which you want to gift and clicking confirm.

The recipient will receive an SMS and email with the details of the gift.

If the recipient doesn't have a Zerodha account, he or she will need to open an account to accept the gift. The gift request is valid for a period of seven days within which the recipient has to accept the gift, else the request will cancel.

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.

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Updated: 20 Nov 2020, 09:01 AM IST
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