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How do I gift stocks?

You can gift stocks, ETFs, and gold bonds to friends and family through Console's gift stocks feature. Watch this video walkthrough on gifting stocks or check out the process below:

  1. Enter the name, mobile number, and email address of the person you want to gift stocks. 
  2. Select the stocks, ETFs, Gold bonds you wish to gift from your holdings. Please note that you can only gift stocks in your demat; you cannot gift T1 holdings. Also, only the stocks that are part of the approved list of securities can be gifted. 
  3. Wait for the recipient to accept the gift. If the recipient doesn't have a Zerodha account, they can open an account online and accept the gift. The gift request is valid for a period of 7 days within which the recipient has to accept the gift, else the request is cancelled. 
  4. Once the recipient has accepted the gift, you will receive an email and SMS notification from Zerodha asking you to verify the recipient's details and approve the stocks to be transferred from your demat to the recipient using the CDSL TPIN.
  5. After you have approved the debit of stocks using the CDSL TPIN, Zerodha will set up an off-market gift transaction at CDSL that you need to verify using an OTP sent to you by CDSL.
  6. 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.
  7. Once the transaction is successfully verified using the CDSL OTP, the stocks are transferred from your demat to the recipient's demat account. The holdings will show up in the recipient's account from the next day of the transfer.
  8. There are no additional charges for gifting. Off-market transfer charge of Rs. 25/- or 0.03% per scrip whichever is higher is applicable for these transfers. The charge will be debited from the trading account balance of the sender of the gift.
  9. To calculate the P&L and buy averages, the gift trade will be automatically entered at the stock's closing price on the day the transfer of the stocks happens. 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 previous closing price on the day the transfer is executed. 
  10. The tax implications for the gift transaction depend on the value of the gift. There could be taxes on the receiver if the gift received is more than Rs 50,000. Check this article to know more about the tax implications for both the sender & receiver.

Note: 

  1. Gifting securities from your account and also selling them on market at the same time might result in an auction penalty.  
  2. The TPIN facility has been made available to Individual, Joint, NRI, and Minor account holders by the depository (CDSL). Only the holders of these accounts can gift securities online on Console. 
  3. If clients have a negative balance in their trading account, they cannot use the gift feature to transfer the shares.