Can You Open a Demat Account Online for a Minor?

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!