Sharekhan Minor Demat Account

Sharekhan the full-service stockbroker, comes up with the facility of minor demat account. So, if you are looking forward to the best investment plan with the maximum returns, then do consider the Sharekhan minor demat account.

If yes, then here comes the piece of information that can guide you all about the Sharekhan minor demat account, the documents required, charges, pros, cons, and so on.

So, let’s get started!

But before hitting the central concept, let’s have a rapid glance at the background of the Sharekhan.

Sharekhan is a full-service stockbroker that is monitored and controlled by SEBI and with a client base of 2 million customers in India.

The firm is present among 575 cities with over 170 branches and more than 3200 franchise partners in the country.

The firm is a depository participant of the CDSL and NSDL and allows the trading in various stock exchanges like BSE, NSE, MCX, NCDEX, and MCX-SX.

But why does the minor demat account can be considered significant? For that, let’s understand the necessary information behind the minor demat account first.

The demat account can be opened by the guardian in the name of the minor, where the guardian only has the authority to handle the account until and unless the minor can manage its own demat account.

The guardian can be a father, or in his absence, it could be a mother. But in the absence of the both, the court came in between to select the guardian for a minor.

Note: Minor cannot be a demat account joint holder.

The demat account for minors can be proved too advantageous for preparing the finance for the child before they grow older.

Through this account, investments in the equity can be made to secure the funds for the future of the child.

A child will get a piece of knowledge about the 

that can be proved supportive in the future.

The minor demat account allows the trading in shares, and the guardians can use this account particularly to trade in the equity delivery shares only.

Now, let’s have a quick glance at the following segments to understand the concept.

How to Open the Sharekhan Minor Demat Account?

The Demat account is opened by diverse kinds of investors including individual investors, joint investors, companies, and NRIs.

But even in the case of minor, you can apply for the demat services by fulfilling all the requirements of account opening.

To complete Sharekhan sign up process, it is necessary to upload a demat account opening form that contains all the integral details of both the minor and also the guardian.

Along with this, the KYC forms of the guardian and a minor are required that is to be submitted to the Sharekhan along with the account opening form.

The signature is to be made by the guardian on every single paper or document from the side of the minor.

You know what, the Sharekhan minor demat account opening procedure is unpretentious and uncomplicated, and it can be opened in two different ways. 

The following are the methods that can help you in opening the minor demat account. Check the processes and select the one that comforts you.

• The account opening form for the minor can be downloaded from the website of Sharekhan.

Fill in the complete form with the information that has been asked for and submit the form with the copies of the document required for minor Demat account to the local Sharekhan branch. 

• Another way is to open the Sharekhan minor demat account online.

Now, let’s discuss the online method of opening the minor demat account in detail to understand the steps. Consider the following steps for the same:

• Visit the website of Sharekhan and login into it.
• Search and click on the ‘Open an account’ tab.
• Fill in essential details like email Id and mobile number.
• Filling the account opening form with the necessary pieces of information like the PAN card number of the minor, address, name, etc., is the next step.
• Submit the form after completing it.
• For both the minor as well as the guardian, the KYC is to be finished as it is a minor demat account.
• After this, the procedure is all completed, and the individual will receive a call from Sharekhan for the verification of opening the minor demat account.
• Within the next 3-4 business days after the call, all the necessary information and credentials will be sent to the email Id.

The account opening procedure for the minor is uncomplicated and allows hassle-free working.

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Documents Required for the Sharekhan Minor Demat Account

You must be confused about what documents required for minor demat account. Isn’t it? If yes, then let’s clear this query as to open a minor demat account; the papers of both the minor and guardian are required, and it is necessary.

Now, check the following list of the documents required for Sharekhan minor demat account opening:

• Proof of Identity (POI)

– PAN Card

– Passport

– Voting Card

– Driving License

• Proof of Address (POA)

– Aadhar Card

– Ration Card

– Registered Lease

– Sale agreement of residence

– Utility Bills

• A birth certificate as an age proof
• Minor and guardian’s photographs
• The guardian 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 documents of the minor, the following documents of the guardian is also required:

• Xerox of the Aadhar card
• The photographs
• PAN card xerox
• Email Id and the mobile number
• KRA is also required, but if the guardian does not have the KRA and IPV documents, it will become necessary to submit the KYC’s first page.

To understand the documents in detail, refer to the following table. The below-mentioned table will expose the pacers that come under the above-mentioned proofs.

 

Thus to open the minor demat account, you need to submit the minor’s document and document of the guardian. 

On submission of the document, the appointed executive will call back for the verification, after which the Sharekhan minor demat account will get executed.

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Sharekhan Minor Demat Account Charges

To open a minor demat account, the next query that comes is of the charges. So the Sharekhan minor demat account charges can be seen in the following table:

 

To open the minor account, you did not have to pay a single penny, but to maintain the demat account, you will have to pay Rs. 400 annually.

The account opening fees do not vary in the case of basic demat account opening and minor demat account opening with any bank based stockbroker or any independent stockbroker.

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Closure of Sharekhan Minor Demat Account

The minor account became inoperative and needs to be closed once the minor becomes major because the fresh new demat account will have to be created for the person along with the account opening form and KYC submission.

The necessary documents will be required to be submitted again, like identity proof, address proof, and so on.

The details and signatures of the guardians will get deleted, and the signature of the applicant will be collected on all the forms.

The shares that were available in the minor demat account will be easily get transferred to the new demat account.

There are two conditions when the minor demat accounts get closed:

1. When the trading activities are not carried forward by the individual, in that situation, the minor demat account will get closed.
2. In another case is where the minor turns major and crosses the age of 18 years. Here the minor demat account will shift to the standard demat account, which requires the closure of the minor demat account.

The minor who has turned to major has now had to sign the agreement along with the depository participant to finish the formalities to begin a fresh and new demat account. 

The details that were entered earlier at the time of opening the minor account will get deleted.

For closing the minor demat account, in the case when the minor turns major, the applicant needs to follow the below steps:

• You will have to visit the local branch of the Sharekhan and then need to submit the minor demat account closure form along with the credentials that have been asked for.
• After the submission of the form, the minor demat account will get blocked, and a new demat account will be activated.

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Pros of Sharekhan Minor Demat Account

The two flanked product makes the value in the market, so does the two sides of the minor demat account, i.e., advantages and disadvantages. So, here comes the segments that will discuss the same.

If you want to know about the pros of the Sharekhan minor demat account, refer to the following information:

• The Capital Profit

The forms of capital assets, which include but are not restricted to bond, stocks, and real estate, contribute to investment profits.

If the sales value of the capital or asset exceeds the purchasing value, then the profit occurs. 

The capital profit concerns the enhanced asset value and the investment that determines the investment or asset price appreciation.

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• Reasonable Option in all Children’s Plans

Through the demat account of the minor, the guardian may shift the shares or securities for later usage.

Amongst all children’s plans, such as LICs, the Sharekhan minor demat account is the perfect option.

The benefits of the Sharekhan minor demat account will help the people who are interested in opening the account with the firm to collate the pieces of information and decide on their basis.

• Access to Reap the Benefit of Refer and Earn Demat Account Program

Now there are certain limitations on using a minor demat accounts when it comes to trading, but with Sharekhan refer and earn you can pick the alternative way to make money. Under this program, you get the chance to earn the amount of Rs 400 on every referral.

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Cons of Sharekhan Minor Demat Account

After filling the knowledgeable pouch with the pros of the Sharekhan minor demat account, let’s discuss the disadvantages of it now because it is crucial to recognize the both sides of the product.

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• Trade in Shares only

It only allows you to trade in shares which means that the guardian can easily trade in delivery shares that are allowed in the minor demat account.

In a minor demat account, trading cannot take place in certain categories, which include:

⇒Equity intraday

⇒Equity derivatives

⇒Currency derivatives, etc.

If you decided to use the minor demat account for doing intraday trading or trade in derivatives, then the minor demat account cannot be used in that case.

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• Technologically Advanced

Awareness of the apps and the basic knowledge about operating the software is necessary to open the minor demat account because after opening the demat account, most of the data is disclosed digitally.

For those who are not highly technologically advanced, it is challenging to use a desktop or smartphone for them.

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• Became Major and then Use

The shares and securities are kept in the demat account and can be utilized after he becomes the major and satisfies the requirements to maintain the demat account.

In this situation, a new fresh demat account will be created, for which several steps are to be followed.

These steps further include the completion of the KYC and taking the sign of the major on all the documents because the previous documents will get deleted.

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• Account Freezing

With some mishaps or incidents, the minor demat account can get freeze. Let’s assume an example to understand the concept.

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Rahul is a minor whose father opted for Sharekhan minor demat account facilities for his son. He will sign all the documents from Rahul’s side.

If tomorrow his father dies, at that point of time, the demat account will get freeze which was managed by the father.

Be it two days or two months, until and unless the minor gets the new guardian approved, the minor demat account will remain frozen.

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The people compare the pros and cons together to get and have a clear understanding of the firm with whom they are going to connect.

The cons don’t mean that the product is inefficient and unreliable and cannot be getting used.

Note: The above-mentioned pros and cons are related to all the minor demat accounts and not only concerned with Sharekhan.

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Conclusion 

Sharekhan is a SEBI regulated and managed full-service stockbroker with an Indian potential client of two million clients that comes up with the facility of minor demat account. 

So, if you are looking ahead for such an account then it is good to refer to the eligibility, documents required and charges linked with the account opening process. 

It is good to compare all the charges and start investing without delay.

Get started by opening a Minor Demat Account, refer to the form below and start investing in the stock market

 

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