Can NRI Trading Account be opened for NRI Minor?

A trading account can be opened for NRI minor provided a broker is offering these services.

SEBI has issued FAQs in reference to Trading and Demat account for minor however it does not specifically mention anything about NRI minor. Thus it is left to the interpretation of the market participants whether to offer such services. Generally, a broker may not easily open a trading account for minor except for few select brokers like Prostock.

It is important to note that a minor cannot enter into a contract with the broker to purchase or sell the shares freely in the market. The sole purpose of a minor trading account should be to sale the shares acquired by minor either by way of IPO, inheritance, corporate action, off-market transfers under the following reason:

• Gift / Donation.
• Transfer between family members.
• Implementation of Government / Regulatory Directions or Orders.