Can I open an account at Zerodha in my child's name?
We aren't opening trading accounts for minors, this is because provisions of the Indian Contract Act don't allow a minor to enter into a contract. The Exchange regulations also don't allow us to open a trading account for a minor.
- You as a Guardian, could open a Demat account for your kids at Zerodha, invest in stocks in your name (with your trading/demat account) and then make an off-market transfer of these securities to your kid's Demat account as a gift.
- Once the minor has attained majority, the account holder needs to submit a new KYC application form or KRA registered with us. The account holder will also have to submit a new account opening form duly complete in all respects. The guardian’s details shall be deleted and the guardian’s signature shall be replaced by the account holder’s signature.
The above procedure can be followed only if the word ‘minor’ is not present in the “Account Holder’s name” when the account was opened. If the word “minor” is present, then the existing account has to be closed and a new account has to be opened.
- The same applies to mutual funds as well. A minor can't purchase mutual funds via Coin. The guardian has to invest in mutual funds and then make an off-market transfer into the minor's Demat account.
The below points have to be kept in mind while opening a minor Demat account at Zerodha -
- The account opening documents have to be filled by the guardian of the minor.
- In the KYC form, the guardian's photograph has to be attached along with the minor's photo.
- The Guardians KYC documents (i.e. ID proof, address proof) have to be submitted along with the minor's KYC documents.
- The minor's PAN card and the Birth certificate must be submitted.
- The guardian's KYC form is required if the guardian's KYC has not been registered
- Address proof of minor (account holder)
- Bank proof of minor (account holder)
- AMC charges of Rs 300/- (An upfront AMC is required to be collected while opening a minor's account.)
- A written letter/email confirmation required by the guardian for the reason of opening the minor's account.
Since a trading account will not be opened for a minor, they will not be able to buy or sell shares. Shares can only be transferred in and out of the minor's Demat account. For the transfer of shares, a CMR will be generated and provided to the guardian.
To open a minor Demat account, you can call 080 47192020 / 080 71175337 and our sales representative will help you get the account opened.