How to Transfer or Gift Shares in Demat Form?

Are you holding shares and would like to gift it to your spouse or children or any other person? Yes!! Then read the article below explaining the:

1.Procedure for gift or transfer of shares in demat form.

Shares can be gifted both in demat form and physical form, but the procedure is bit different. Gifting of shares to another is legally termed as Transfer of Shares. Let us see how you (donor) can gift or transfer shares to a specific person (donee):-

Step 1: The Donor is required to initiate an off-market transaction by submitting a Delivery Instruction Slip (DIS) to his Depository Participant (DP) (in simple words DEMAT Account provider) for transferring shares from his (donor) demat account to the donee’s demat account.

Step 2: The Delivery Instruction Slip (DIS) should have the following details:

1.Name of the Donee

2.Donee’s Demat Account Details

3.Share/Stock to be transferred

4.ISIN Number of the Company

5.Quantity of the Shares to be transferred

Step 3: On the other hand Donee is required to give a receipt instruction to his DP (DEMAT Account Provider) to accept these shares, if he has not already given a standing receipt instruction.

Step 4: It is advisable to execute a gift deed on a non-judicial stamp paper my mentioning the details of the transaction for legal records and to avoid any tax queries in future.