Is it possible to buy and sell shares in the minor demat accounts?

A minor demat account can only hold shares, but cannot independently carry out buying and selling of shares. All the transactions in the minor's demat account are conducted by the guardian.

Is it possible to open a minor Demat account without a PAN card?

No, it is mandatory to provide a valid PAN for the minor and the guardian.

Whether a minor can have a trading account associated with his Demat account or not?

No. As minors are not permitted to carry out any trade activities on stock exchanges through their minor demat accounts. They cannot open any trading account. Minor demat accounts can only invest in IPOs, mutual funds, etc., solely through delivery-based instruments and with the guardian's authorisation.

Do taxes differ for minor demat account gains?

Yes, as per the provisions regarding clubbing of income within the Income Tax Act, any income earned within the minor's Demat account pertaining to dividend income and/or capital gains would be clubbed in the guardian’s taxable income. The guardian would be liable for payment of tax on that income.

What happens to a minor’s Demat account when they turn 18?

The account is frozen for debit until the now-adult investor completes full KYC. They must submit their updated PAN, Aadhaar, signature, bank details, and complete IPV. After this, the minor demat account is seamlessly transferred to a regular Demat Account, and guardian control will be removed

Demat Account for Minors

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Demat Account for Minors

Stock Market

Demat Account for Minors

Explore demat accounts for minors, their eligibility requirements, guardian roles, documents required, and the stepwise process to open and manage minor accounts.