Demat Account: Planning to gift shares? Here's how the process works

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demat account, one can seamlessly transfer ownership of these financial assets, fostering a connection that transcends material possessions. Also Read: Demat Account: What is the significance of holding period? For instance, grandparents may opt to pass down a legacy to their grandchildren by gifting their shares of a company with sentimental value, instilling in them the importance of long-term investing.

Additionally, close friends may express their support and camaraderie by gifting each other shares of a promising startup, nurturing their mutual aspirations for financial success. In this article, we will explore the process of gifting shares and understand its significance for both the giver and the recipient.

Also Read: Demat Account: 10 crucial things beginners should keep in mind Gifting shares from one demat account to another involves two types of processes, such as off-market trades or transfers, or it can also be done online. Off-market transfers operate similarly to standard transactions, with the seller and buyer engaging directly.

The process begins with the gifting party submitting a delivery instruction slip (DIS) to their depository participant (DP), authorising the transfer of securities from their demat account to the recipient's account. In the DIS slip, the gifting party must specify the recipient's DP ID, DP name, and client ID, along with details such as the ISIN (International Securities Identification Number) of the shares being transferred.