How To Open A Demat Account For Minors

With a high return on investment, a robust economy (both nationally and internationally) and excellent tax benefits, investing in financial markets has never been a better prospect. To facilitate this, a record number of people are now opting to open their own demat account, which doubles as their trading account. The faster you join the market, the better the results will be.

In fact, this has prompted parents to think about the future and set up demat accounts for their children while they are still minors. Since minors are incapable of making financial decisions about themselves or their accounts, the procedure to create a demat account for them is slightly different than it is for adults.

A few things to keep in mind are:

  1. No joint account with the minor can be set up. The account will be in the name of the minor while its transactions and decisions (including even closing the account) shall be handled by the parents or guardian.
  2. The guardian is de facto considered to be the father. In his absence, the mother can be the guardian. In case both the parents are unavailable, then the guardian can be someone appointed by the court.
  3. If the guardian is a parent, the minor gains complete control of their account by the age of 18. If the guardian is appointed by the court, then the minor gains complete control of their account by the age of 21.
  4. Once the minor has come of age, he or she is required to submit a fresh account opening form along with a Know Your Customer (KYC) document. Along with that, the minor-turned-major must submit their PAN card details and a fresh passport-sized photograph. The signature of the guardian will also be replaced by the now major’s signature.
  5. Additionally, a fresh DP-Client agreement will be executed. Any pending decision made by the guardian, but applicable to be executed after the minor attains majority can now only be executed after the consent of the minor-turned-major.

How to open a demat account for minors:

  • The process is much the same as it is for an adult. The guardian must submit their proof of identity, proof of address, PAN card, passport-sized photograph. For the minor in question, the birth certificate (original or attested copy) must be submitted along with a photograph.
  • The in-person verification does not require the presence of the minor; only the guardian along with all the relevant documents (including documents of the minor) is required.
  • After the approval is given, the account starts functioning immediately with the guardian being able to conduct transactions on the minor’s behalf.


Many brokerages have easy processes to set up demat accounts for minors, including Kotak Securities which has a very streamlined procedure in place. There is no reason to deprive your children of a good head start in life, and opening a demat account for them is just that. They will definitely thank you for the years to come!

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