You need a Legal Guardian Letter when opening a minor's account if you are not the child's biological parent. This court-issued document proves your legal authority to manage the minor's financial and legal matters.
What is a Legal Guardian Letter?
A Legal Guardian Letter is an official document that a court issues to designate you as the legal guardian of a minor. This letter serves as proof of your authority to act on behalf of the minor in financial and legal matters, including opening and managing the minor's bank or investment account.
When do you need it?
SEBI regulations require a guardian to manage a minor's account until they reach the age of majority. If you are either the father or the mother, your relationship with the minor generally provides sufficient proof of guardianship. However, if you are not the biological parent, such as a grandparent, relative, or any other appointed individual, you need a legal guardian letter issued by a court.