Physical shares can be gifted to a relative. Yes/no?

AMA (Ask Me Anything)
1

@nithin

I have several relatives who are elderly and holding physical shares, and I wanted to help demat it for them.

I was wondering if it was possible to create a gift deed in which I accept these shares and pay them in cash at a predetermined rate, including taxes.

Or
Should they demat it themselves and then sell it on exchange?

Anyone else who wants to comment is welcome to do so.

2

Also, will it be possible for shares to be added to my account based on gift deed from elderly relatives?

3

As per SEBI’s notification, from April 01, 2019, physical shares can no longer be transferred unless it’s a case of transmission (transfer upon death of the investor). All other forms of transfer can only happen in demat mode.

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4

Thanks sir