FREE Account Opening + No Clearing Fees
Loading...

Can a minor open trading Demat account?

asked

Open an Instant Account with Zerodha

Yes Demat account can be opened in the name of a minor child by the natural guardian (parents) or court-appointed guardians only. 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 needs to fulfill all requirements for documents and KYC norms to open the account in the name of the minor. Also a minor cannot be a joint holder in a demat account.

The demat account can be held only in the name of the minor. Date of birth of the minor is mandatory required, with proof. The account becomes inoperative when the minor turns major. On attaining major status, a new demat account needs to be opened after completing all documentation.

answered


1 Comments

1. Gaurav   I Like It. |Report Abuse|  Link|June 22, 2016 11:39:07 AMReply
I do have a supplementary question on top of this question. Basically my intent is to open a demat account for my minor daughter for the purpose of applying in IPOs. So my question is : Whether both Guardian (Having his own Demat A/C) and Minor (via Guardian) can apply to the same IPO and it will be considered as two different applicants? Appreciate if someone can clarify the same for me.
1.1. BULLS OF INDIA   I Like It. |Report Abuse|  Link|July 25, 2016 4:01:44 PM
a) Demat account can be opened in the name of a minor child by the natural guardian (parents) or court-appointed guardians only.

b) The guardian needs to fulfill all requirements for documents and KYC norms to open the account in the name of the minor.

c) A minor cannot be a joint holder in a demat account. The demat account can be held only in the name of the minor.

d) Date of birth of the minor is mandatory required, with proof. The account becomes inoperative when the minor turns major.

e) On attaining major status, a new demat account needs to be opened after completing all documentation. The erstwhile holdings can then be transferred to the new account.

f). If shares are held jointly with a minor in paper form, they need to first be transferred to the minor and then to the demat account in the minor’s name.

g). Through the Minor’s Trading account only delivery of shares could be bought & sold.


List of all questions Ask your question


More Demat Account Questions...

  1. Is it mandatory to have a demat account to apply in an IPO?
  2. How do I transfer from one demat account to another demat account?
  3. I do not have a demat account. Can I apply in an IPO?
  4. How much interest do I get on demat account?
  5. What are the maintenance changes for a demat account? Are there any hidden charges or processing fees on the transactions I do on demat account?
  6. Do I have to pay yearly maintenance changes even I do not hold any shares in my demat account?
  7. Can a person have more than one demat account on his name?
  8. Can a Demat account opened for a minor?
  9. What is the diffrence between Demat account number and Trading account number ?
  10. What is CDSL and NSDL ?
  11. Can a minor open trading Demat account?
  12. What is a depository?
  13. Who is Depository Participant (DP)?
  14. What is dematerialisation Process?
  15. Why should I hold shares in demat account and is it compulsory for every investor to open a demat account to trade in the stock market?
  16. How many demat accounts I can open?
  17. Is there nomination facility in demat account ?
  18. Do I have to contact all companies for any update in my personal details ?
  19. I am not a frequent trader on stock exchange. What should I do with transaction statement ?
  20. What kind of help can I get If I have problem with my NSDL demat account?
  21. Can I take a loan on my demat holdings?
  22. How much do I pay for my demat account?
  23. What are the value added facilities on my demat account ?
  24. What precautions should i take to prevent misuse of securities lying in my account ?
  25. Can I open more than one demat account with only one DP in identical names?
  26. Can a demat account be opened with four holder's names?
  27. What is the Standing Instruction given in the demat account opening form?
  28. Can someone else operate my demat account on my behalf on the basis of Power of Attorney?
  29. What is a clearing member account and how is it different from a beneficiary account?
  30. How many Demat Account can be added to my Trading Account?
  31. How many Demat Accounts do I need?
  32. Is there any nomination facility in Demat Account?
  33. Do I need to contact all companies for any update in my personal details?
  34. What precautions should I take to prevent misuse of securities lying in my demat account?
  35. I am not a frequent trader on stock exchange. What should I do with Transaction Statement?
  36. How much do I need to pay for my Demat Account?
  37. What kind of help can I get if I have any problem with my NSDL Demat Account?
  38. What are the value added facilities on my demat account?
  39. How long can I hold the shares of a company? What are the changes applied in holding shares for the long term?
  40. How do I safeguard my Demat Account with Power of Attorney to Broker?
  41. Are there different types of Power of Attorney?
  42. What is the validity of my Power of Attorney for demat account?
  43. Are there any charges associated with Demat Power of Attorney?
  44. Does broker allows time bound Power of Attorney for Demat Account?
  45. Should Power of Attorney be printed on the Stamp Paper?
  46. Can I sign Power of Attorney online?
  47. Can a Broker misuse the Power of Attorney?
  48. Can a Broker withdraw money from my linked bank account using the Power of Attorney I gave?
  49. Can I use Broker Pool Demat Account to keep my share and do not give Power of Attorney?
  50. Can I trade in Futures and Options without Power of Attorney to my Demat account?
  51. My signed Power of Attorney is still in courier. Can I still trade?
  52. How can I get dividends directly to the bank instead of the cheque? Is there any online application?
  53. Can I add another person to my demat account?
  54. Why do I need a demat account?
  55. Is demat account required for SIP?
  56. What is the differences between NSDL and CDSL?
  57. Does any stock broker offer CDSL Easiest facility?
  58. Can I transfer shares from CDSL demat account to NSDL demat account?
  59. What happens if I do not pay AMC for a demat account?
  60. Can I open Demat Account without PAN Card?

List of all questions Ask your question