A Complete Guide to Opening a Minor Demat Account in India

In India, stock market investments have become an essential part of wealth creation. While traditionally adults were the primary investors, many parents now want to secure their children's financial future by starting investments early. This is where a Minor Demat Account comes in.

A Minor Demat Account allows parents or legal guardians to invest in stocks, bonds, mutual funds, and other securities on behalf of their child. The child (minor) is the account holder, but the guardian operates the account until the child turns 18.

Let’s go through a detailed step-by-step guide on how to open a Minor Demat Account in India, along with the best brokers, required documents, and key regulations.

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What is a Minor Demat Account?

A Demat (Dematerialized) Account is an electronic account used to store securities such as stocks, bonds, and mutual funds in digital form. A Minor Demat Account functions the same way but is opened in the name of a child below 18 years, with a parent or guardian managing it.

Key Features of a Minor Demat Account:

✅ Only delivery-based trades allowed – No intraday, futures, or options trading.
✅ Guardian Operated – Until the child turns 18, the guardian makes all investment decisions.
✅ Conversion at 18 – Upon turning 18, the minor must convert the account into a regular Demat account.
✅ Linked to a Guardian’s Bank Account – The account is connected to a bank account for seamless transactions.

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Step-by-Step Guide to Open a Minor Demat Account

Step 1: Choose a Depository Participant (DP)

A Depository Participant (DP) is a broker, bank, or financial institution registered with NSDL or CDSL (India’s two central depositories). Some of the best brokers to consider are:

Broker	Best For	Annual Charges
Zerodha	Low brokerage	₹300
Upstox	Fast account opening	₹150
ICICI Direct	Integrated with ICICI Bank	₹700
HDFC Securities	Strong research & advisory	₹750
Angel One	Free account opening	₹0 (for basic plan)

Choosing the right broker: If you want a budget-friendly option with easy online processing, Zerodha or Upstox are great choices. If you prefer a bank-based brokerage with personalized support, ICICI Direct or HDFC Securities are better.

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Step 2: Fill Out the Account Opening Form

Once you have chosen a broker, visit their website or branch to get the Minor Demat Account Opening Form. Some brokers allow an online application, while others require a physical visit.

Fill in details such as:

• Minor’s name, date of birth, and PAN card details
• Guardian’s name and relationship with the minor
• Registered mobile number and email ID
• Bank details for linking transactions

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Step 3: Submit Required Documents

You will need to provide KYC documents for both the minor and the guardian.

Documents Required for the Minor (Child):

📌 Identity Proof: PAN Card (Mandatory)
📌 Address Proof: Aadhaar Card / Passport / Birth Certificate
📌 Date of Birth Proof: Birth Certificate or School Leaving Certificate
📌 Passport-size Photographs

Documents Required for the Guardian (Parent or Legal Guardian):

📌 Identity Proof: PAN Card (Mandatory)
📌 Address Proof: Aadhaar Card, Passport, or Voter ID
📌 Bank Proof: Bank Passbook / Cancelled Cheque (For account linkage)
📌 Guardian’s Passport-size Photographs
📌 Relationship Proof: Birth Certificate of the minor or a legal guardianship document (if applicable)

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Step 4: Verification Process (IPV - In-Person Verification)

Most brokers conduct an In-Person Verification (IPV) to confirm the identity of the guardian and the minor. This can be done in two ways:

✅ Online Verification: Some brokers like Zerodha, Upstox, and Angel One allow video verification via webcam.
✅ Offline Verification: In the case of traditional brokers like ICICI Direct or HDFC Securities, you may have to visit a branch for verification.

During IPV, you may need to show your original documents for verification.

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Step 5: Sign the Agreement & Submit the Application

The broker will provide a Demat Agreement outlining the terms and conditions for a minor demat account. The guardian must read and sign this agreement before submitting the application.

Once submitted, the DP will process your request, which usually takes 2-5 working days.

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Step 6: Receive Demat Account Details & Start Investing

After approval, the broker will provide:
✔ Demat Account Number (BO ID) – A unique 16-digit number
✔ Login Credentials (if online platform is available)
✔ Details of Linked Bank Account

The guardian can now begin investing in stocks, mutual funds, ETFs, and bonds for the minor’s future.

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Key Rules & Restrictions for a Minor Demat Account

🚫 No Intraday Trading: A minor demat account can only be used for long-term investments (delivery-based trades).

🚫 No Derivative Trading: Futures and options (F&O) trading is strictly prohibited.

🚫 Only Guardian Can Operate the Account: The minor cannot trade until they turn 18.

🚫 Conversion Required at 18: Upon turning 18, the minor must submit fresh KYC documents and convert the account to a regular demat account.

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Best Brokers for Minor Demat Account in India (2024)

Broker	Best For	Annual Charges	Account Opening Mode
Zerodha	Low Brokerage	₹300	Online
Upstox	Quick Processing	₹150	Online
ICICI Direct	Bank Integrated	₹700	Online/Offline
HDFC Securities	Research & Advisory	₹750	Offline
Angel One	Free Plan Available	₹0	Online

Recommendation:

• For online processing → Choose Zerodha or Upstox
• For a full-service bank-based broker → Choose ICICI Direct or HDFC Securities

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Final Thoughts

Opening a Minor Demat Account is a great way to start investing early for your child’s future. With the right broker, a simple registration process, and a guardian’s supervision, you can secure financial growth for your child.