HDFC Demat Account for Minors

Do you have an account with HDFC and are looking to open an account for your child too? If yes, then here comes this piece of information on the HDFC demat account for a minor that will cover the detailed parameters like:

• Documents Required for Minor Demat Account
• Opening Process
• Charges
• Pros and Cons
• Closing an account

To learn more about the HDFC Securities Sign Up process for minors (aged below 18 years), let’s start!

But wait! Before heading to these parameters, let’s discuss more the background of the HDFC.

HDFC Securities is a full-service stockbroker and is a bank-based broker providing a 3-in-1 demat account, along with a bank, demat, and trading account.

The firm has at least 260 branches through which the services have become appreciable and trouble-free.

It is true that with the HDFC demat account for minors, the following services are allowed:

• You can trade in IPOs, FFOs, OFS, and so on with the minor demat account.
• Through the stockbroker, you can easily invest in securities, ETFs, mutual funds, and shares.

Apart from these, now if you want to know about the services or securities in which you can not trade with the minor demat account are as follows:

• The minor demat account does not support intraday buying and selling.
• Apart from the delivery trades, you cannot opt for any trading.

If you want to create a minor demat account with such a bank-based stockbroker then the HDFC is the right approach.

Want to know why? Delve inside the following segments to understand the concept with detailed information.

How to Open the HDFC Demat Account for Minors?

Minor demat accounts with HDFC Securities can be opened in a similar manner as the other demat accounts. 

However, there are some other formalities that need to be fulfilled to get registered with the broker. 

The demat account opening form with all the necessary information of both the minor and guardian is required to be uploaded to the broker.

Along with this, the KYC HDFC Demat Account opening form of both the minor and the guardian is also needed to be uploaded to HDFC.

On the behalf of the minor, the guardian will sign all the documents. Being available with the modest and straightforward procedure, HDFC opens the minor demat account in three different ways, as listed below.

Here is the procedure that makes you comfortable in opening the demat account for minors. Go through the processes and select the one that comforts you.

• Download the form, and submit.

The first process is downloading the minor demat account opening form from the website of HDFC.

Fill in the form along with the credentials or pieces of information that have been asked for, and then submit the form along with the photocopies of the required documents in the local branch of the HDFC.

• Visit the branch directly of HDFC that offers the demat account services.
• The second process is to open the minor demat account online through HDFC.

If you are opting for the online method to open a minor demat account at HDFC, consider the following steps:

• The very first step is to visit the website of HDFC and login into it.
• Explore the website and search for the ‘Open an account’ option and click on it.
• Mobile number and Email Id are to be filled in the next step.
• The account opening form can be filled with crucial pieces of information like the PAN card number of the minor, address, name, and so on.
• Complete the form and submit it to the HDFC.
• Because this is a minor demat account, the both minor and the guardian must finish the KYC procedure.
• All the steps are completed after this. The call will be made to the individual for the verification of opening a demat account.
• The essential pieces of information along with the credentials will be sent to the email Id within the next 3-4 working days.
• Sometimes, a few happy clients use the HDFC Securities Refer and Earn plan as well. This benefits both the referrer and the referral.

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Documents Required for the HDFC Demat Account for Minors

With the submission of a few documents, the minor demat account can be easily opened. The list of the documents required for a minor demat account is given below:

• PAN Card of the guardian
• Address Proof
• Age Proof 
• Photographs
• Identity Proof

After this, the documents of the guardian that are required to open a minor demat account are listed below.

• Aadhar Card
• PAN Card
• Photographs
• Mobile number and Email Id

To understand the documents in detail, check the following table that explains the kind of documents that can be submitted as proof in a specific segment.

 

Note: It is very important to submit the KRA, but in case the individual does not have KRA and IPV documents, in that case, he can present the very first page of the KYC page.

The above mentioned were the documents required for the HDFC demat account for minors. These documents are very important to be submitted so that the account opening process can steadily work.

After submitting the documents, the executive from the particular firm will revert back with a phone call for verification. After the verification is done, the minor demat account will be opened.

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Charges for HDFC Demat Account for Minors

After looking at the documents required and the process to open the minor account, now, if you want to open the account with HDFC, then you might be curious to know about the charges.

The following table shows the HDFC demat account for minor charges along with the HDFC Securities Account Opening Charges. Skim the following table to understand it better.

 

To open the account, HDFC does not charge any payment, but the Account Maintenance Charges (AMC) are free for the first year, whereas from the second year, you will be needed to pay Rs. 750.

The charges to open the basic demat account and minor demat account remain the same and do not change or vary.

To be very clear, HDFC Securities may seem expensive to a few traders and that is why it makes sense to understand HDFC Securities Brokerage for your own understanding.

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Closure of HDFC Demat Account for Minors

The minor demat account can be closed under two circumstances. To know about it, refer to the following information.

• The minor demat account can get closed in case the individual does not want to carry forward the trading activities, transfer of the securities.
• In another case, if the minor cross the age of 18, the minor demat account will get closed as the new standard demat account will be created to carry forward the trading activities.
• The agreement with the depository participant and the completion of the formalities to open a new standard demat account is to be finished.
• The previous details will get deleted where the guardian had signed the documents.
• And the new signatures of the significant will going to be taken on the documents.

To understand the procedure of closing the minor demat account in the second case, i.e., when the minor changes to major.

• Visit the HDFC local branch and present the minor demat account closure form along with the filled required credentials.
• When the form will be submitted, the standard demat account will be created from the minor demat account.

The account opening and account closing process of the minor demat account is straightforward takes lesser time.

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Pros of HDFC Demat Account for Minors

It is rightly said that a coin has two sides and so does the HDFC demat account for minors. The two sides are the pros and cons of the account.

If you want to know how the minor demat account is advantageous, refer to the following information.

1. Capital Gain!

The rise in the capital asset’s value leads to the capital gain that is noticed after selling the assets.

It can be declared on the income taxes, which can be short-term or long-term. In short, the capital gain can be a result of an asset’s or investment’s price appreciation.

It occurs after the sale, or the current price of an investment surpasses the purchase price.

The capital gain can be traceable to all kinds of the capital assets such as bonds, real estate, stocks but it is not only limited to them. 

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2. A Good Substitute for the Children Plans!

If you are looking to surprise your kid with the zero voltage future, i.e., tension-free or easy-going future, you can open a minor demat account and store the securities for the longer term.

The best option or alternative for the children’s plans, such as LICs, is the minor demat account.

The shares or the securities can be transferred by the guardian to the minor demat account to preserve it for the future and to use them judiciously.

The pros and cons of any single thing, service is made so that it can be compared and hence the individual can make a better decision.

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Cons of HDFC Demat Account for Minors

After the benefits, here comes the disadvantages. To know more about the cons of HDFC demat account for minors, delve inside the segment.

1. Techno Savvy!

The demat account itself shows the online generation that follows the dematerialization process of converting the securities from the papers to the electronic format.

Hence, it concludes that a person should know the working of the Androids or computer if you want to stay updated with the pieces of information.

The basic knowledge regarding the apps and their working, along with the understanding of the computer basics, is required to operate the demat account.

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2. Turn Major and then Use It!

After fulfilling the essential requirements to operate the demat account, the stocks or securities in the account can be used by the person (a minor who became significant).

In this case, the KYC is to be done again where the minor demat account will be changed to the standard demat account, and all the signatures of the guardians will get deleted.

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3. Suspension of an Account!

The minor demat account will get suspended in some circumstances. One of which is the death of the guardian.

The minor demat account will automatically freeze after the death of the guardian. When the new guardian will be provided, the minor demat account will start working.

Note: In the case where the minor’s guardians die, the court provides the new guardian until which the minor demat account stays suspended.

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4. The Long Term Investments

If you are interested in opting the derivatives trading, then it can be possible in the minor demat account.

There is only delivery trading that can be done in the minor demat account, which means the currency, commodity trading cannot be done with the minor demat account.

Note: The advantages or disadvantages listed above are connected to all minor demat accounts and are not only implicated in the HDFC.

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Conclusion

HDFC allows the opening of the minor demat account for which the individual needs to know everything that is described in the information above.

The account opening form with all of the other needed data from both the minor and the guardian must be submitted to the broker.

Along with this, the KYC form of both the minor and the guardian details are also needed to be uploaded to HDFC. 

This is all about the minor demat account with HDFC. 

The comparison is a must! After this, or on the basis of that, better decisions can be made.

So, Research, Compare, and open a minor demat account!

Thinking to open a Demat Account? Please refer to the form below

 

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