You can now gift securities online. Here's how.

Some brokers now allow investors to gift securities to family and friends online, directly from their demat account. You can use this to easily gift shares, bonds, exchange traded funds and even mutual funds held in your demat account.

The facility, which relies on CDSL’s Easiest (Electronic Access To Securities Information and Execution of Secured Transaction) system, is easier than the physical method, which involves filling and submitting a delivery instruction slip (DIS).

At present, discount brokers Zerodha and Fyers offer this service. You can also register directly on CDSL's Easiest platform to gift securities.

Visit your broker’s website, go to the holdings you want to gift, click on send as a gift, enter receiver’s name and mobile number, select the securities and the quantity, and hit confirm. The recipient can accept the gift through an e-mail. Once this is done, you need to confirm it with your CDSL transaction PIN (TPIN). The broker will then set up an off-market transaction. Enter the OTP and the transfer is complete.

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Note that the recipient must be on the list of beneficiaries in your broking account and should also have an account with the same broker. If not, you can add them by simply adding their PAN and demat account number.

You can also do this directly by registering for CDSL Easiest or NSDL Speed-e. If you are doing it directly, the recipient's account need not be with the same broker.

The sender must fill in a delivery instruction slip and submit it to the broker. The DIS will have details such as names and depository participant (DP) IDs of the recipient and sender, the client ID, number of shares to be transferred, and so on.