Can a Demat and Trading account be opened for a minor?

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Yes, both demat and the trading account can be opened in the name of a minor child. The account is 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 the court.

The Guardian is legally entitled to open, operate and even close the bank account, demat account and trading account on the minor's name.

Note that two KYC Application Forms must be filled i.e. one for the Guardian and another for the minor (to be signed by Guardian).

Things to know about Minor Demat & Trading Account:

  • Demat account can be opened in the name of a minor child by the natural guardian (parents) or court-appointed guardians only.
  • The guardian needs to fulfill all requirements for documents and KYC norms to open the account in the name of the minor.
  • PAN Card of the legal Guardian is required to open the demat or trading account.
  • The date of birth certificate is required for a minor child.
  • When minor turns major, the account becomes inoperative. A 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 Account) can be opened in the name of a minor.
  • A minor cannot be a joint holder in a demat account. The demat account can be held only in the name of the minor.
  • 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.
  • Through the Minor's Trading account only delivery of shares can be bought & sold.


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