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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.