- What is a Minor Demat Account?
A Minor Demat Account is a depository account opened in the name of a person below 18 years of age. It is used to hold and monitor securities in electronic form on behalf of the minor.
- Who can be a guardian?
The father, mother, or a court-appointed legal guardian can act as a guardian.
- What should be done when the minor turns 18?
When a minor turns major (18 years old), a fresh KYC is to be carried out, and the minor account must be converted to an individual account.
- What is the age limit to open a Minor Demat account?
A Minor Demat Account can be opened for any individual below 18 years of age.
- Can funds be added and withdrawn from the minor account?
Yes, funds can be added and withdrawn from the minor account. However, these funds cannot be used to buy securities. It can only be used to pay the applicable charges like transaction charges, transfer fees, DP charges, etc.
- Who must sign/eSign the form if any details need to be changed in the minor's account after it is opened?
All the forms and supporting documents must be signed by the guardian with a stamp who has opened the minor's account. To know more, seeWhat type of signature and stamp are required on the DIS as per account type?
Who can operate a minor’s Demat account?
Although the account is opened in the minor’s name, it is operated solely by the guardian until the minor attains the age of 18 (Opened in: Minor’s name | Operated by: Guardian only).
- Whose PAN card and Aadhaar are required while opening a Minor account?
As per SEBI guidelines: Minor’s PAN and Aadhaar are mandatory for account opening and Guardian’s PAN and Aadhaar are also required, as the guardian operates the account on behalf of the minor.
- What are the tax implications for a minor account?
A minor can earn only two kinds of income, i.e., capital gains and dividend income. This income is clubbed with the income of the higher-earning parent, and they will have to bear the entire tax liability on the same.
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