How to buy or sell stocks in minor accounts?
Minors cannot buy stocks. Instead, the guardian can either transfer existing stocks in their demat account or buy stocks and transfer them to the minor’s account. The guardian can initiate the transfer process with the Client Master Report (CMR). The CMR copy is sent to the registered email ID once the minor account is opened. See What is a CMR copy, and where can I get it?
The following articles explain the transfer processes:
- Offline transfer of securities, see How to transfer shares from my Zerodha demat account to another demat account offline?
- Online transfer of securities, see How can I transfer shares from my Zerodha account using CDSL Easiest?
Securities in a minor account cannot be sold, they must be transferred from the minor’s account to the guardian’s account to be sold.