How To Open Minor Demat Account?

Are you planning on transferring a portion of your holdings to your minor child, or you are not 18 yet but want to start investing? But how? Well, here we have complete information on how to open minor demat account?

Don’t worry! We got you covered, Jack.

If you are well acquainted with the share market, you must be aware of this demat account. But, if you are not, let’s understand the definition of a demat account for a child first.

A demat account can be opened by the natural guardian or the court-appointed guardian in the name of a minor child, i.e., below the age of 18, called a demat account for minors.

With the definition clear, we should move forward to discuss – how to open minor demat account?

The answer to this question is not different from that of how to open a demat account. So, let’s begin!

Minor Demat Account Opening Online

The complete minor demat account opening procedure has been listed below:

1. First of all, you must select the stockbroker you want to engage with, as it is a crucial decision. 
2. Once the decision is made, log on to their official website.
3. On the homepage of the website, you’ll find a button or tab that reads – Open An Account.
4. Click on it.
5. You will get redirected to the designated page.
6. Here, you have to enter some necessary details like email ID, mobile number, name, city, etc.
7. After you click on the submit button, you will receive an OTP (One Time Password) to verify your email ID and phone number.
8. Now, you have to fill the detailed account opening form. The vital information includes PAN Number (of the minor), name, address, etc.
9. Complete and submit the form.
10. Since the account is for a minor, the KYC is to be completed for the minor and the guardian (natural or appointed) of the minor.
11. The account opening process on our end is complete.
12. As the process nears its completion, you’ll receive a call from the corresponding broker for verification.
13. Post this call, within 3-4 business days, a set of credentials and other relevant information will be mailed to you.

You’re all set!

You must be cautious about following all the Minor Demat Account rules or the SEBI guidelines for demat account in general before you open and use one.

If you have any stocker in your mind or still confused of, you can choose any of the following and know their procedure:

Now, let’s talk about the minor demat account opening documents required.

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Documents Required For Minor Demat Account

On similar lines as that of the standard demat account, the documents required for minor demat account are as follows:

• PAN Card Number (of the minor)
• Address Proof
• Age Proof (Birth Certificate)
• Photographs (of the minor and guardian)
• Identity Proof

Once all of these documents are submitted to the chosen depository participant and verified by the appointed executive, a minor demat account is created. The credentials are mailed to you on the registered email ID.

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Minor Demat Account Charges

The charges to open a minor demat accounts are the same as that of the standard charges levied on the ICICI Demat Account opening. The two major charges levied while you commence the process of opening a minor demat are:

1. Account Opening Charges
2. Account Maintenance Charges (AMC)

They are levied on every demat account. The minor demat account charges for some brokers have been compiled below:

 

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Conclusion

Many investors make an off-market transfer of shares to the demat account of their minor child. The reason for doing this can be varied, but it is a prevalent practice. Therefore, it is important to open minor demat account. 

With the unfamiliarity of the concept, we have compiled all the information in this aspect. If you were looking for the process to open minor demat account, we hope you found the answer.

Further, the documents required to open minor demat account have been listed to facilitate more comfortable and faster process completion.

Generally, the opening process of a minor demat account is considered less time-consuming in comparison to the process to open a demat account.

Merry investing!

Wish to open a Demat Account? Refer to the form below

 

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