Open a minor demat account online and start investing for your child’s future. Learn more about the benefits of opening a minor demat account and find a stockbroker who offers the best services.
Can a minor demat account opening online?
Yes, a minor demat account can be opened online in India. However, there are some restrictions.
- The account can only be opened by the minor’s guardian.
- The minor cannot trade in the account. Only the guardian can trade in the account on behalf of the minor.
- The account can only be used to hold equity shares in delivery mode. Derivatives trading is not allowed.
Minor Demat Account Opening Online, you will need the following documents:
- The minor’s birth certificate
- The guardian’s PAN card
- The guardian’s Aadhaar card
- The minor’s Aadhaar card (if the minor is above the age of 5 years)
- Proof of address of the guardian and the minor
You can open a Minor Demat Account Opening Online with a variety of online brokers in India. Some of the popular brokers include:
- Dhan
- Zerodha
- Upstox
- ICICI Direct
- Angel One
- Kotak Securities
The process of opening a minor demat account online is relatively simple. You can follow the steps below:
- Visit the website of the broker you want to open the account with.
- Click on the “Open Account” tab.
- Select the “Minor Demat Account” option.
- Enter your details and the details of the minor.
- Upload the required documents.
- Pay the account opening charges.
Your minor demat account will be opened within a few days.
Here are some additional things to keep in mind when opening a minor demat account online:
- The guardian will be the account holder and will have full control over the account.
- The minor will not be able to access the account or make any transactions on their own.
- The account can only be used to hold equity shares in delivery mode. Derivatives trading is not allowed.
Read Also:
FAQ of Minor Demat Account Opening Online
Here are some FAQs about opening a minor demat account and their answers:
What is a minor demat account?
A minor demat account is a type of demat account that can be opened for a person below the age of 18 years. It allows the guardian of the minor to invest in stocks and other securities on behalf of the minor.
Who can open a minor demat account?
Only a guardian can open a minor demat account. The guardian must be a parent, grandparent, or legal guardian of the minor.
What are the documents required to open a minor demat account?
The following documents are required to open a minor demat account:
- Guardian’s PAN card
- Guardian’s Aadhaar card
- Minor’s PAN card (if available)
- Minor’s Aadhaar card
- Minor’s birth certificate
What are the benefits of opening a minor demat account?
There are several benefits of opening a minor demat account, including:
- It allows you to start investing in your child’s future early.
- It helps you to inculcate the habit of saving and investing in your child.
- It provides a tax-efficient way to invest for your child.
What are the risks involved in opening a minor demat account?
There are some risks involved in opening a minor demat account, including:
- The market risk: The value of the investments in the minor’s account can go up or down, depending on the market conditions.
- The liquidity risk: It may be difficult to sell the investments in the minor’s account quickly if needed.
- The fraud risk: There is always a risk of fraud when investing in the stock market.
How can I choose the best stockbroker for opening a minor demat account?
Here are some factors to consider when choosing a stockbroker for opening a minor demat account:
- Reputation: Choose a stockbroker who has a good reputation and is regulated by a financial regulator.
- Fees: Compare the fees charged by different stockbrokers.
- Services: Make sure the stockbroker offers the services you need, such as online trading and research.
Conclusion of Minor Demat Account Opening Online
If you are planning to open a minor demat account, I suggest you do your research and choose a stockbroker who has a good reputation and offers competitive fees. You should also read the terms and conditions carefully before opening the account.