• Products
    Investment Suite
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Non Convertible Debentures
    Sovereign Gold Bond
    Exclusive
    NRI Account
    Corporate/HUF Trading Account
    Private Client Group
    Features
    SipIt
    MTF
    Investment Suite
    Exclusive
    Features
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Non Convertible Debentures
    Sovereign Gold Bond
    NRI Account
    Corporate/HUF Trading Account
    Private Client Group
    SipIt
    MTF
  • Platform
    Trading Platforms
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Trade From Charts
    Features and Tools
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Equity Screeners
    Payoff Analyzer
    Calculators
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    SWP Calculator
    CAGR Calculator
    Simple Interest Calculator
    ELSS Calculator
    Step up SIP Calculator
    All Calculators
    Trading Platforms
    Features and Tools
    Calculators
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Trade From Charts
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Equity Screeners
    Payoff Analyzer
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    SWP Calculator
    CAGR Calculator
    Simple Interest Calculator
    ELSS Calculator
    Step up SIP Calculator
  • Pricing
  • Research
    Research Calls
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Stock Research Recommendations
    MTF Stock Recommendations
    Research Reports
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
    Research Calls
    Research Reports
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Stock Research Recommendations
    MTF Stock Recommendations
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
  • Market
    Market Movers
    Share Market Today
    Top Gainers
    Top Losers
    Stocks
    Large Cap
    Mid Cap
    Small Cap
    Indices
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    All Indices
    Mutual Funds
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    All AMC's
    IPO
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Tata Capital IPO
    Vikran Engineering IPO
    Quarterly Results
    SRI LOTUS DEVLPRS N RTY L's Q1 FY 2025-26 Quarterly Results
    Aeroflex Neu's Q1 FY 2025-26 Quarterly Results
    PVP Ventures' Q1 FY 2025-26 Quarterly Results
    NDR INVIT Trust's Q1 FY 2025-26 Quarterly Results
    Market Movers
    Stocks
    Indices
    Mutual Funds
    IPO
    Quarterly Results
    Share Market Today
    Top Gainers
    Top Losers
    52 Week High
    52 Week Low
    Volume Shockers
    Large Cap
    Mid Cap
    Small Cap
    State Bank of India
    Reliance Industries Ltd
    HDFC Bank Ltd
    Infosys Ltd
    Tata Consultancy Services Ltd
    Hindustan Unilever Ltd
    ITC Ltd
    IRCTC
    NSE
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    BSE
    Sensex
    BSE Bankex
    BSE Small Cap
    BSE Mid Cap
    BSE 100
    Indian Indices
    Global Indices
    Gift Nifty
    S&P
    Nikkei Index
    Hong Kong Index
    KOSPI Index
    Global Indices
    AMC's
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    Schemes
    Parag Parikh Flexi Cap
    SBI Small Cap Fund
    SBI Contra Fund
    Nippon Small Cap Fund
    ICICI Pru Technology Fund
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Tata Capital IPO
    Vikran Engineering IPO
    Oval Projects Engineering Ltd
    Sugs Lloyd Ltd
    Snehaa Organics Ltd
    Abril Paper Tech Ltd
    Rachit Prints Ltd
    Amanta Healthcare Ltd
    boAt IPO
    Hero Fincorp IPO
    SRI LOTUS DEVLPRS N RTY L's Q1 FY 2025-26 Quarterly Results
    Aeroflex Neu's Q1 FY 2025-26 Quarterly Results
    PVP Ventures' Q1 FY 2025-26 Quarterly Results
    NDR INVIT Trust's Q1 FY 2025-26 Quarterly Results
    Jaiprakash Associates' Q1 FY 2025-26 Quarterly Results
    Alps Industries' Q1 FY 2025-26 Quarterly Results
    Brightcom Group's Q1 FY 2025-26 Quarterly Results
    Visa Steel's Q1 FY 2025-26 Quarterly Results
    Coffee Day Enterprises' Q1 FY 2025-26 Quarterly Results
    Supreme Holdings & Hospitality's Q1 FY 2025-26 Quarterly Results
    Kavveri Defence & Wireless Technologies' Q1 FY 2025-26 Quarterly Results
    Knowledge Marine & Engineering Works' Q1 FY 2025-26 Quarterly Results
  • Learn
    Stockshaala
    Basics of Stock Market
    Introduction to Fundamental Analysis
    Introduction to Technical Analysis
    Derivatives, Risk management & Option Trading Strategies
    Personal Finance
    Resource
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Investing Guide
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Events
    Budget 2025
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2025
    Stockshaala
    Resource
    Investing Guide
    Events
    Basics of Stock Market
    Introduction to Fundamental Analysis
    Introduction to Technical Analysis
    Derivatives, Risk management & Option Trading Strategies
    Personal Finance
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Budget 2025
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2025
  • Partner
    Business Associates
    Kotak Connect Plus
    Startup connect
    Business Associates
    Kotak Connect Plus
    Startup connect
  • Support
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement
  • News

Understanding How You Can Gift Shares to your Loved Once

  •  4m
  •  3,281
  • Updated 30 Nov 2023
Understanding How You Can Gift Shares to your Loved Once

Key Highlights

  • Giving a share of company stock could possibly help them one day create enough money to acquire that one thing they don't have but have always desired.
  • Buying gifts that adults truly want without going broke is not an easy chore.
  • Kids are more difficult to convince because they usually don't have any long-term goals for which they are saving money.
  • However, educating children early on about money management and investment will benefit them in the long run.

It will be necessary to transfer the actual stock if it is kept in certificate form. When endorsing the shares, the owner must do it in the presence of a guarantor, who could be their bank or broker.

On the certificate's back, there might also be a form related to ownership transfers. The certificate will become transferrable and non-negotiable after it has been completed.

Typically, equities are maintained electronically in a brokerage account rather than in physical form. The stock donor has the option to transfer all or a portion of their stock in a certain company. Many brokers permit gifts of shares on a recurring basis. For instance, a sender might work out a plan with their broker to provide shares to a child every year on their birthday.

The sender must provide written consent and specific transfer instructions for the majority of brokerage accounts. Brokers typically offer an online form where you may enter information like:

Sender's Information

  • Account name and address
  • Account number
  • Details of the stock, including quantity and company name

Recipient's Information

  • Account name
  • Social Security number
  • Account number

It's typically simple to transfer shares within the same brokerage. However, if it's going to a different bank institution, the sender should get in touch with them to find out how to complete the transfer specifically through their institution. Given that shares can be transferred electronically, they'll probably give an address for the formal consent or the transfer instructions.

Before moving through with the transfer, it is crucial to confirm that an account has been established with the receiving broker. This guarantees a simple procedure.

Returns Could Be Very High

You may be able to increase the rate of return on your investment by investing in stocks. Thus, visiting here offers the chance to gradually increase your wealth and amass resources for a variety of aims in life. You can make a sizeable fortune if you invest in shares of a reputable company and hold onto them for a long time.

It Beats the Impacts of Inflation

The progressive rise in price levels over time in an economy is known as inflation. It decreases the worth of your investments and the purchasing power of your money. In a year, a food item that is currently 100 rupees in price could be 120 rupees. Returns on bank FDs and PPFs are not likely to outperform inflation. They are unable to combat inflation as a result adequately. The gains from the stock market are much higher and can help you outpace inflation if you stay invested over the long term.

Diversification

One of the guiding principles of investing is diversification. On the stock market, you can invest in a variety of asset classes, including debt instruments, common stock, preference shares, large-cap, mid-cap, and small-cap stocks. By investing in a variety of securities, you may spread your risk. As a result, if one's returns decrease, the other can make up for it. Over diversification must be avoided, though, as it will not add any genuine value to your investment.

Conclusion

Giving stocks as a gift is a unique and considerate method to invest in someone's future while also providing the possibility of considerable long-term financial success. In addition to putting kids on the road to financial independence, teaching them about long-term investments and financial planning gives them the confidence to pursue their dreams and aspirations. The advantages of investing in stocks with reputed companies like Kotak Securities include high returns, protection from inflation, and diversification options. To secure a better financial future and benefit from the potential advantages of stock market investing, investigate investment alternatives at Kotak Securities right now.

FAQs on Gifting Stocks

To gift stocks in India, you can transfer them electronically through a brokerage account, complete the required forms, and provide recipient details.

Yes, gifting stocks may have tax implications, including capital gains tax for the recipient. Consult a tax expert for guidance.

Yes, you can gift a single share of a stock to introduce someone to investing. It's a unique and educational gift.

Yes, a brokerage account is typically necessary to facilitate the transfer of stocks as gifts.

There are no specific age restrictions, but it's advisable to educate recipients about stocks and financial responsibility, especially for minors.

Did you enjoy this article?

0 people liked this article.

What could we have done to make this article better?

Read Full Article >
Stock NameMarket Price
-
-
-
-
-
-
-
-
-
-
Open Your Demat Account Now!
+91 -

Open Your Demat Account Now!
+91 -