TomorrowMakers

Parents, wanting to invest in equity or other listed securities for their children’s future, can choose to open a Demat Account in the minor’s name. However, a specific process is to be followed and a set of relevant documents are required for the account opening.

Demat Account For Minors

Parents always want to save ahead for their child’s secure future. To this end, they choose to invest in different investment avenues, including those listed on the stock exchange. SEBI (Securities and Exchange Board of India) allows minors to hold a Demat Account in their name. However, rules state that the parents or legal guardians of the minor can operate the account on the minor’s behalf till the child reaches maturity. The account will be in the minor’s name and joint ownership is not allowed. Moreover, parents have to follow a specific process to open the account and submit their and their minor’s documents for verification.

  • Parents or legal guardians can open a Demat Account in a minor’s name.

  • The account will be held individually in the minor’s name while the parent or guardian can operate it till the minor becomes an adult.

  • To open the account, the parent or guardian must choose a Depository Participant (DP), and fill out and submit the account opening form.

  • Documents of the parent/guardian and the minor would be required which include identity and address proof, photographs and the parent’s PAN Card. 

How to Open a Demat Account for a Minor?

The process of opening a Demat account in a minor’s name is as follows –

  • The parents should choose a Depository Participant (DP) for opening the Demat Account

  • The application form for opening the account should be filled out. It can be done online or offline

  • Parents are required to sign the application form and submit it with the relevant set of documents

  • The DP will assess the application form and verify the documents. Once the verification is successful, the account will be opened.

Documents Required

The parent and child's documents are required to open a minor’s Demat account. These documents include the following –

  • Parent’s PAN Card

  • Parent’s address proof like an Aadhaar Card, Voter’s ID Card, driver's license, passport, rent agreement, etc.

  • Minor’s birth certificate which contains the name of the parent. If the birth certificate doesn’t contain the parent’s name then the minor’s passport, Aadhaar Card or other documents can be submitted wherein the parent’s name is mentioned.

  • KYC documents of the parent and the child

  • Identity proof of the parent and the minor like passport, Aadhaar Card, voter’s ID Card, etc.

  • A recent coloured photograph of the parent and the minor

  • Minor’s bank account details, if available 

Also Read – Know the benefits of investing in your child’s name

Click here to read the latest articles on Savings

The Bottom Line 

Parents or guardians can use the convenient online process and open a minor’s Demat account. Once the minor reaches 18 years, he/she can operate the account with full autonomy.

Also Read – Know SEBI’s latest reforms for minor investors

Parents always want to save ahead for their child’s secure future. To this end, they choose to invest in different investment avenues, including those listed on the stock exchange. SEBI (Securities and Exchange Board of India) allows minors to hold a Demat Account in their name. However, rules state that the parents or legal guardians of the minor can operate the account on the minor’s behalf till the child reaches maturity. The account will be in the minor’s name and joint ownership is not allowed. Moreover, parents have to follow a specific process to open the account and submit their and their minor’s documents for verification.

  • Parents or legal guardians can open a Demat Account in a minor’s name.

  • The account will be held individually in the minor’s name while the parent or guardian can operate it till the minor becomes an adult.

  • To open the account, the parent or guardian must choose a Depository Participant (DP), and fill out and submit the account opening form.

  • Documents of the parent/guardian and the minor would be required which include identity and address proof, photographs and the parent’s PAN Card. 

How to Open a Demat Account for a Minor?

The process of opening a Demat account in a minor’s name is as follows –

  • The parents should choose a Depository Participant (DP) for opening the Demat Account

  • The application form for opening the account should be filled out. It can be done online or offline

  • Parents are required to sign the application form and submit it with the relevant set of documents

  • The DP will assess the application form and verify the documents. Once the verification is successful, the account will be opened.

Documents Required

The parent and child's documents are required to open a minor’s Demat account. These documents include the following –

  • Parent’s PAN Card

  • Parent’s address proof like an Aadhaar Card, Voter’s ID Card, driver's license, passport, rent agreement, etc.

  • Minor’s birth certificate which contains the name of the parent. If the birth certificate doesn’t contain the parent’s name then the minor’s passport, Aadhaar Card or other documents can be submitted wherein the parent’s name is mentioned.

  • KYC documents of the parent and the child

  • Identity proof of the parent and the minor like passport, Aadhaar Card, voter’s ID Card, etc.

  • A recent coloured photograph of the parent and the minor

  • Minor’s bank account details, if available 

Also Read – Know the benefits of investing in your child’s name

Click here to read the latest articles on Savings

The Bottom Line 

Parents or guardians can use the convenient online process and open a minor’s Demat account. Once the minor reaches 18 years, he/she can operate the account with full autonomy.

Also Read – Know SEBI’s latest reforms for minor investors