Can You Open a Demat Account Online for a Minor?
- jainambrokingseo
- Mar 12
- 2 min read
Investing from an early age can help secure your child's financial future. One way to introduce them to the world of investing is by opening a Demat account in their name. But can you open a Demat account online for a minor child? Let’s explore the process, eligibility, and benefits.
Can a Minor Have a Demat Account?
Yes! A minor (below 18 years of age) can have a Demat account, but it must be operated by their legal guardian (parent or court-appointed guardian). The account remains in the child’s name, but the guardian manages all transactions until the child turns 18.
Can You Open a Minor’s Demat Account Online?
Yes, many stockbrokers and depository participants (DPs) now allow online applications for a minor’s Demat account. However, some brokers may still require offline verification for document submission.
Steps to Open a Minor Demat Account Online
1. Choose a Depository Participant (DP)
Select a SEBI-registered stockbroker or bank offering minor Demat accounts. Jainam Broking
2. Gather Required Documents
You will need the following:
✅ Minor’s Documents:
PAN card (mandatory for investments in stocks or mutual funds)
Birth certificate or passport (proof of age)
Aadhar card (identity & address proof)
✅ Guardian’s Documents:
PAN card (mandatory)
Aadhar card (identity & address proof)
Bank statement (latest 6 months)
Photograph of the guardian
✅ Bank Account Details:
A minor’s bank account or guardian’s account must be linked for transactions.
3. Fill the Online Application Form
Visit the broker’s website and choose "Open a Minor Demat Account."
Enter the minor’s and guardian’s details.
Upload scanned copies of the required documents.
4. Complete eKYC and In-Person Verification (IPV)
Some brokers may require eKYC verification via Aadhaar OTP.
In-person verification (IPV) might be needed via a video call or a short recorded video.
5. Sign and Submit the Application
The guardian must e-sign the application using Aadhaar-based authentication.
Once submitted, the application is reviewed and approved within a few days.
Key Features of a Minor’s Demat Account
🔹 Only Delivery-Based Trading Allowed – No intraday or F&O trading.
🔹 Guardian Controls Transactions – Investments are made by the guardian on behalf of the child.
🔹 Conversion to Regular Demat at 18 – Once the minor turns 18, the account is converted into a standard individual Demat account.
Benefits of Opening a Minor’s Demat Account
✅ Early Investment Exposure – Helps in wealth creation from a young age.
✅ Tax Benefits – Investment gains may be taxed at a lower rate under the minor’s income.
✅ Financial Discipline – Teaches kids about investing and financial planning.
Conclusion
Yes, you can open a Demat account online for a minor, provided the legal guardian manages it. It’s a great way to start early investments in stocks, mutual funds, and bonds. If you’re planning for your child’s financial future, opening a minor’s Demat account is a smart move!
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