Transfer Mutual Funds to Relative or Friends

#1
Hi All,

I want to close my demat/trading account. The challenge I have is the MFs that I hold. I do not want to sell them. How can transfer them to someone else's account (brother/sis/wife?)

Thanks,
 

Alchemist

Administrator
Staff member
#2
In the title you have mentioned "friends".

If you transfer to a friend's account, it would be considered a sale of securities and thus have tax implications for you.

To transfer your shares or mutual fund units from your demat account, you have to fill a DIS (Delivery Instruction Slip) and give it to your current DP.

Once the demat account is empty, you can close it.

or

When you submit the account closure form, you can mention the details of the transferee account. Your DP will transfer the shares/units to the transferee account and then close your demat account.
 
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