Can Minor open the Demat and Trading ? Everything about Minor Investment and Demat A

MewarLion

Active Member
#1
Can Minor open the Demat and Trading ? Everything about Minor Investment and Demat Account


Children below the age of 18 years in India are considered as a Minor.

Yes, both demat and trading account can be opened in the name of a minor child. The account will be operated by a guardian till the minor becomes major, Guardian has to be the father or in his absence mother. In absence of both, father or mother, the guardian can be appointed by court.

The guardian is legally entitled to open, operate and even close the Bank account, Demat account and Trading account on minor name.
Note that apart from KYC of Minor , KRA of Guardian would also be necessary , if not already done . Both KYC of Minor and KRA of Guardian will be singed by the Guardian.


Things to know about Minor Demat / Trading Account


• PAN Card for Minor is Mandatory.
• The legal guardian has to provide all the documents and fulfill the KYC norms.
• PAN Card of Guardian is required to do KRA of Guardian.
• The date of birth certificate of minor would be required.
• When minor turns major, the account becomes inoperative. New separate account has to be opened in this case. Demat holdings can be transferred from minor account to major account.
• If paper shares are held jointly with a minor, they need to first be transferred to the minor and then to the demat account in the minor's name.
• A 3-in-1 Account (Bank+Trading+Demat) can be opened in the name of a minor.



Minor's Account Trading Restrictions


• Can Apply in IPO Application using Minor Account.
• Minor Trading Accounts are allowed only to invest in stock market (Equity Delivery Trades only).
• They are not allowed to trade in following segments:
o Equity Intraday
o Equity Derivative Trading (F&O)
o Currency Derivatives (F&O)
 
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