Motilal Oswal Minor Demat Account

Worried about your child’s future, now you can actually make a better plan for the investment for your child through a minor demat account. When choosing the firm, do consider the Motilal Oswal minor demat account. 

Want to know more about it? Then, consider this piece of information to sort all your queries.

Before beginning the central concept, have a quick glance at the background of the company, i.e., Motilal Oswal.

Let’s begin!

Motilal Oswal is a full-service stockbroker that is registered, monitored, and controlled by SEBI. The company was established in 1987 and has become one of India’s oldest stockbrokers.

The firm is a depository participant of CDSL and NSDL, and apart from these, it allows trading with various stock exchanges, including NSE and BSE.

Motilal Oswal is the best broker to open a minor demat account with. But why? Before that, let’s understand the basics and the necessary information about the minor demat account.

In case the guardian is permitted to control the account, the demat account may be opened on the behalf of the minor only before the minor is in a position to administer his/her own demat account.

Basically, the guardian is a father, but in case if the father dies, the mother becomes the guardian. But in the absence of both the guardians, the court came to the forefront that selects the new guardian for the minor.

It is important to note that the minor can never be a joint holder.

Before getting older, the demat account for minors can be said beneficial for collecting the money for the child in the future.

With the minor demat account, you can invest in equity and can protect the funds for the future.

The information about the equity investment can become encouraging for the child to understand the concept and trade in it.

Note: The fact is here that with the minor demat account, you cannot trade intraday, currency, and derivatives.

If you want to be more vigilant about the concept, and want to grab more information about Motilal Oswal minor demat account? Dive in to proceed smoothly with the account opening details. 

How to Open the Motilal Oswal Minor Demat Account?

The straightforward process of Motilal Oswal account opening makes it easier to invest.

The minor cannot register into the contract itself because of which the authorized guardian can open a minor demat account for him.

The documents of the guardian play a vital role here. You will be required to submit the documents that are mentioned in the next segment, and after the submission, the DP then moves forward in verifying the details and confirming them.

Now to open the minor demat account with Motilal Oswal it is essential to submit the Motilal Oswal account opening form consisting of several details about the guardian and the minor.

Not only this, if you want to open a minor demat account with Motilal Oswal, it is very important to submit the KYC forms of both, i.e., the guardian and the minor.

Note: On every single paper, it is recommended that the guardian do the signatures on the behalf of the minor.

The procedure of opening the account with Motilal Oswal is relatively unsophisticated and painless and can be opened in the two various ways that are listed below.

In order to activate a minor demat account, take a summary of the key method. Select appropriately and begin to save!

• From the official website of Motilal Oswal, the account opening form can be downloaded. 

It is vital to complete the information that has been asked for and submit it to the local branch of the Motilal Oswal along with the essential documents asked.

• This might seem like a heavy process for some people. So, you might be thinking about whether it is possible to open a minor demat account online with Motilal Oswal. Isn’t it? If yes, then clear your doubts now because the other procedure is the online method.

Want to learn the process? Read the following steps to know more about the online procedure of opening the demat account.

• Visit the Motilal Oswal website and enter it by logging in to it.
• Look for the ‘Open an account’ tab and select it.
• Email Id and mobile number are to be provided in the details.
• Now, after all this, the account opening form is to be completed by adding the necessary pieces of information like the PAN card number of the minor, address, name, and so on.
• After completing the form, submit it.
• The KYC for both the guardian and child is to be completed.
• The procedure will be all completed the call from the executive of Motilal Oswal, who will revert back for the verification of opening a minor demat account.,
•  The account will be set up by the firm, and just within 2-3 business days, the essential credentials along with the information will be sent to the email Id.

The account opening procedure relies on the way you choose to start your demat account. Once the account gets activated, you can access different products and services of the Motilal Oswal demat account.

And of course, if you like the trading experience with this stockbroker, then you may choose to use the Motilal Oswal Refer and Earn offer and make a passive income too.

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Motilal Oswal Account Opening Documents

Before opening the minor demat account, if you want to know about the documents that are required for the procedure, here comes the information.

Now, it is necessary to submit the required documents of the guardian and the minor including, the address proof, identity proof, age proof, photographs, PAN card details of both the minor and guardian.

To open a minor demat account with Motilal Oswal, here are the documents required, and they are essential to submit.

Following is the list of the documents that are required to Motilal Oswal for opening the minor demat account.

1. Identity Proof
2. Address Proof
3. Age Proof
4. Photographs

Note: The guardian’s bank account information where the minor is the common or joint holder, although the minor’s different bank account isn’t really mandated. In the matter of the legal guardian, the court orders of appointing a person as a guardian are required.

Along with the above-mentioned documents of the minor, it is necessary for the guardian also to submit few documents, including:

1. Photocopy of the Aadhar Card
2. Photographs
3. Photocopy of PAN card
4. Mobile number as well as email Id.
5. KRA is vital to submit, but in the case where the guardian does not have the IPV and KRA documents, the first page of KYC’s photocop[y became essential to submit.

To make the segment easier to understand, consider the following table on the documents required for a minor Demat account.

 

In the situation of opening the standard demat account, the documents of an applicant are required, whereas, in the case of a minor demat account, both the documents of the minor and the guardian is necessary. 

The executive from Motilal Oswal will revert back with a phone call for the verification of opening an account with the firm.

Motilal Oswal Minor Demat Account Charges

The account opening procedure is quite simple and if the steps are understood, then let’s jump onto the charges. To have a piece of detailed information on the Motilal Oswal minor demat account charges, have a glance over the following table.

Before checking the table, it is necessary to mention that Motilal Oswal does not charge any account opening fee. This means, if you want to open a minor demat account with the firm, you should not need to pay a single penny to a broker.

To understand the AMC, have a quick sneak peek at the following table.

 

Note: Motilal Oswal charges the AMC based on different plans. With the plans, the AMC also varies. 

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Closure of Motilal Oswal Minor Demat Account

Once the minor turn major, the minor demat account will become inactive and ill be needed to close for opening a standard or basic demat account with the broker.

The procedure again consists of the KYC submission by the major to his broker.

The required documents like that of the identity, address proof, and so on have to be submitted for starting the procedure of opening an account with Motilal Oswal.

The previous signatures of the guardian will get deleted by the stockbroker because of which the minor (who has turned major) has to submit the new documents himself.

If you are worried about the shares that are available in the minor demat account, then you should not think bout it for so long.

But why? Because the shares will get transferred to the new standard account after it get converted from the minor demat account.

Are you peculiar to know about the situation at which the minor demat account will get closed? If yes, there the following are the two situations where the Motilal Oswal minor demat account gets closed:

1. The first situation is when the activities related to trade are not carried ahead by the guardian, so at the end, the account will get closed.
2. Now, the most common situation is the time when the minor turns 18, which means he is able to use the demat account. So, in this case, the minor demat account will get changed to the standard demat account.

With the depository participant, it is necessary for the minor to sign the agreement to complete the formalities to start a new standard demat account.

As the previous documents will get deleted, so the applicant is required to follow few steps for the standard demat account with Motilal Oswal.

• Together with the credentials that have been talked about and a minor demat account closure form, an applicant is required to visit the Motilal Oswal local branch.
• After submitting the form, the demat account on the name of the minor will get blocked and a new demat account will be opened for the applicant.

The closure of Motilal Oswal minor demat account and account opening processes are simply online, whether it takes some time with the offline process. 

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Pros of Motilal Oswal Minor Demat Account

If you have made the mind to open a minor demat account with Motilal Oswal, then here comes another information that will discuss the two sides of the coin, i.e., pros and cons.

The pros of the Motilal Oswal minor demat account are discussed below.

• Return on Capital!

Because the capital or asset selling price increases the purchase price, automatically, the profit will get generated.

Capital gains refer to the increased price of the investment and the asset, which really refers to the value of assets or share prices.

Investment gains are generated by the types of capital investments, including but are not limited to bonds, shares, and real estate.

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• Sensible Preference in the Child’s Plans!

The Motilal Oswal Minor Demat account is an excellent replacement for all child programs, such as LICs. But how?

As the guardian can transmit the shares or securities for subsequent use via the demat account of the minor, which makes the opening of an account the best alternative for the child’s future.

Okay! So now you have made your mind to opt for the minor demat account services of Motilal Oswal. Isn’t it? If yes, then here is an advice to check the disadvantages too.

Where to find disadvantages? Here comes the next segment with the cons of Motilal Oswal minor demat account. To learn more information on the same, let’s delve into the section which is full of information.

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Cons of Motilal Oswal Minor Demat Account

As discussed above, here are the cons of the minor demat account that have been discussed. To know more about the cons of the Motilal Oswal minor demat account, have a look at the following piece of information.

1. Trading can be done in Shares!

In a minor demat account, trading under certain sections cannot take place, including:

• Equity intraday
• Equity derivatives
• Currency derivatives, etc.

One can invest only within shares, which makes it convenient for the guardian to exchange delivery shares permitted in the minor demat account.

Also, in this case, if you have opted to use the minor demat account for intraday trading or trading in derivatives, the minor demat account will not be utilized.

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2. Technologically Developed!

The demat account on its own demonstrates the conversion of securities from papers to the electronic format online following the dematerialization process.

It is a challenge to use a laptop or a smartphone for someone who is not high-tech.

Understanding of apps and good knowledge of the device operation is required to open the demat minor account, as most of the details will be divulged digitally after opening the demat account.

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3. It is the Time to Use the Account!

The shares, as well as securities, are stored in the demat account that will be accessed when the minor turns to the major and meets demat account criteria.

Therefore in case, a separate demat account will be developed, which again will take numerous moves.

All those other measures usually involve the fulfillment of the KYC and signing all of the documents with the major, so the past documents are omitted.

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4. Account Blocking!

The minor demat account may get frozen with any incidents or accidents. To understand the implications, let’s assume a case.

Abhinav is indeed a minor for whom his dad had decided to open a Motilal Oswal minor demat account. He’s going to sign all the papers as Abhinav is not allowed to do so.

If his father dies tomorrow, Motilal Oswal will suspend the minor demat account that was operated by the father at that stage.

Whether four days or four months, the minor account would further remain in effect until the minor receives the approval of the new guardian.

People keep comparing the advantages and disadvantages of the company they’re going to link with and have an excellent knowledge to trade with it.

The cons of the Motilal Oswal minor demat account may not mean that the product is sluggish and futile.

Important point: The above-mentioned advantages (pros) and disadvantages (cons) apply to all the minor demat accounts, not just Motilal Oswal.

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Conclusion 

The minor cannot enroll in the agreement on their own, as a result of which the authorized guardian may start a minor account for him.

Motilal Oswal comes up with the seamless process of opening a demat account for minors via both online and offline methods. 

Here to speed up the process, it is important to consider the documents required to open the account. Consider the eligibility and documents discussed above and proceed further without any hassle.

It is the time to Research, Compare, and Decide! 

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