What is legal guardian letter and why is it needed to open minor account?

A Legal Guardian Letter is an official document issued by a court designating an individual as the legal guardian of a minor. This letter serves as proof of the individual's authority to act on behalf of the minor in financial and legal matters, including opening and managing a minor's bank or investment account.

As per SEBI regulations (PDF), a minor’s account must be managed by a guardian until they reach the age of majority. If the guardian is either the father or mother, their relationship with the minor is generally sufficient proof of guardianship. However, in cases where the guardian is not the biological parent—such as a grandparent, relative, or any other appointed individual—a legal guardian letter issued by a court is required.