Demat Account
The date of birth certificate is required from minor child.
When minor turns major, the account becomes inoperative. New separate account has to be opened in this case.
Demat holdings can be transferred from minor account to major account.
If paper shares are held jointly with a minor, they need to first be transferred to the minor and then to the demat account in the minor's name.
A 3-in-1 Account (Bank + Trading + Demat Account) can be opened in the name of a minor.
What are the limitations of a minor's trading account?
Minor Trading Accounts are allowed only to invest in stock market (Equity Delivery Trades only).
They are not allowed to trade in Equity Intraday / Equity Derivative Trading (F&O) / Currency Derivatives (F&O) / Commodity derivatives
Minor can't be a joint holder in a demat account. Joint account cannot be opened with a minor in it as one of the account holder.Minor account should be a separate account.
What happens to a minor demat account when the minor becomes major?
There are two options:
A. Close Minor Demat Account and open a new Demat Account
The existing minor account can be closed and new demat account opened in the name of the minor turned major
All securities in the minor account can be transferred to the new demat account
B. Convert Minor Demat Accont to Major Demat Account
Existing minor account can still be used. Minor turned major has to sign a new agreement with the DP and complete all formalities required for opening a new demat account.
Guardian details entered earlier have to be deleted.
General Q/A related to Minor and IPO
Does Minor need a Demat account to invest in IPO?
Yes, demat account is mandatory to apply in an IPO. Minor can still use bank account of any family member to apply in an IPO.
Can minor apply for ipo?
Yes, minor can apply for IPO shares as long as they have a demat account.
Does an IPO Minor need a Demat account to invest in IPO?
Yes, demat account is mandatory to apply in an IPO. Minor can still use bank account of any family member to apply in an IPO.
