Can Minors Open a Demat Account With Sharekhan?

Yes, a minor can most definitely open a Demat Account with Sharekhan.

Let’s understand the documents that need to be submitted to open a demat account for a minor.

Step 1: Account Opening Form

Enter all relevant details on the demat account opening form of both the minor and the guardian. Two different KYC forms, one for the guardian and the other for the minor have to be provided with the account opening form. Guardian has to make all the signatures on the account opening and KYC forms.

Step 2: Proof of Identity–POI

The PAN Card of the guardian is to be compulsorily provided.

POI documents like Aadhar Cards, passports, Voting cards, and Driving licenses have to be submitted by both the guardian and the minor.

Step 3: Proof of Address–POA

POA documents from among Aadhar Card, Ration Card, Registered Lease or Sale agreements of residence, Utility bills, etc. need to be provided.

The birth Certificate of the minor needs to be provided.

Bank account details of the guardian, where the minor is a joint holder, is required. A  minor need not have a separate bank account.

In the case of a legal guardian, the respective court orders appointing the person as the guardian of the minor.

After submission of all documents to the depository participant (broker), he opens the account in the name of the minor. It is important to remember that the minor demat account cannot be opened as a joint account.

The minor does not have any tax implications from the earnings made through the demat account. The minor’s income is added to either the parent’s income, whoever’s income is more, or the guardian’s income.