What documents are required to open a minor account online?
A minor account can be opened online or offline. To open it online, the following documents are required:
- PAN: Digital copies of both minor's and guardian's PAN
- Minor's Aadhaar number: Required for OTP verification
- Date of Birth proof: Digital copy of minor's DOB proof (birth certificate, school leaving certificate, passport, or higher secondary mark sheet). For non-English birth certificates, include English extract (PDF) in one combined PDF
- Passport-size photograph: Digital copy of minor's photograph
- Bank proof: Digital copy of minor's bank account (cancelled cheque, bank statement, or passbook)
- Legal guardian letter: Digital copy required if guardian is not the parent
- Address proof: Digital copy of guardian's address proof (passport, masked Aadhaar, driver's licence, or voter ID).
- Guardian's signature: Digital copy required
What are the account opening and Account Maintenance Charges (AMC) for a minor account?
Minor accounts have no account opening charges or Account Maintenance Charges (AMC).
How long does it take to open a minor account?
Minor accounts open within 48 hours after document verification.
Can a minor account be opened completely online?
Yes, minor accounts can be opened completely online.
Can I open Zerodha accounts for all my children at the same time?
Yes, you can open multiple minor Zerodha accounts.
How to get a PAN card for a minor?
Apply for a PAN card by visiting onlineservices.nsdl.com/paam/endUserRegisterContact.html.
What happens when a minor turns 18 years old?
When the minor turns 18, the following steps are required:
- Complete a fresh KYC process.
- Convert the minor account to an individual account.
Can funds be added and withdrawn from a minor account?
Yes, funds can be added and withdrawn from minor accounts. However, these funds cannot be used to buy securities. They can only be used to pay applicable charges like transaction charges, transfer fees, and DP charges. For all applicable charges, visit Zerodha charges page.
Can a joint bank account be linked to open a minor Zerodha account?
Joint bank accounts can be linked to minor Zerodha accounts only if the minor is one of the joint account holders.
Can a minor account be opened online if they are an NRI?
No, minor accounts can only be opened offline for NRI minors.
Does the guardian need a Zerodha account to open a minor account?
Yes, guardians must have a Zerodha account to open minor accounts online. If the guardian prefers not to open a Zerodha account, the minor account must be opened offline.
What are the tax implications for a minor account?
Minors can earn two types of income: capital gains and dividend income. This income gets clubbed with the higher-earning parent's income, and that parent bears the entire tax liability. To learn more, visit qna.tax/t/what-are-the-tax-implications-on-minor-s-demat-account/5772.
How to get Kite and Console access for a minor account opened before January 2024?
Minor accounts opened before January 2024 can obtain Kite and Console access by sending the required documents to Zerodha via courier.
Can a minor invest in mutual funds through Coin?
Yes, minors can invest in mutual funds through Coin. For detailed information about mutual fund investing through minor accounts, see Mutual funds for minor accounts - FAQs.
Who must sign forms if details need to be changed in the minor's account after opening?
The guardian who opened the minor's account must sign all forms and supporting documents for any changes.
Can Demat Debit and Pledge Instruction (DDPI) be enabled in a minor account?
Yes, DDPI can be enabled in minor accounts.
- For online activation: Enter the Aadhaar number of the guardian who opened the account.
- For offline activation: The guardian who opened the account must sign the forms.
What are the trading restrictions in a minor account?
As per SEBI regulations (PDF), minor accounts have the following trading restrictions:
- Minors cannot buy shares and government securities (these must be transferred to the account)
- Minors cannot place intraday and F&O orders
- Minors cannot participate in OFS
- Minors can sell holdings from their demat account
- Minors can apply for IPOs, buybacks, and takeovers