Stock prices are correcting in India. Many experts think this could be the time to buy fundamentally strong stocks. But to buy stocks one needs a demat account. One cannot invest in the stocks – or even a type of mutual funds like ETFS (exchange traded funds) – without a demat account. The phenomenal rise in the number of demat accounts in India proves how quickly people are opening these accounts. On August 31, 2024, there were 17.10 crore demat accounts in the country and more than 6 crore new demat accounts – more than the entire population of Italy – were added between January 2023 and August 2024.
While adults are opening demat accounts at a furious pace, demat accounts can be opened for a minor too through a few simple steps. Though the account will be in the name of the minor, his/her parents, or legal guardian, has to operate it till the minor attains the age of 18.
Documents for opening a demat account for minor
In order to open a demat account for a minor, a few standard KYC documents will be required. These are standard documents that we need in almost all our transactions:
PAN of the parent
Identity/Address proof of the parent
Minor’s birth certificate
Document establishing relation of the minor and the guardian/parent
Steps to open a demat account for a minor
STEP ONE: Visit the website of CDSL (Central Depository Services (India) Limited) or NSDL (National Securities Depository Limited).
STEP TWO: A form has to be filled up online with the details of the minor and the parent. These details must tally with the KYC details.
STEP THREE: Passport-size photographs have to uploaded along with all the KYC details of both the minor and the adult (parent/guardian).
STEP FOUR: After verification, the ID and account number will be furnished to the guardian/parent.
NPS Vatsalya and PPF for minors
There is an increasing trend in India to begin investment journeys in the names of minors. While there were provisions for opening a PPF (Public Provident Fund) account in the name of a minor, the latest extension of such an investment was implemented in NPS (National Pension System) when NPS Vatsalya was launched by Union Finance Minister Nirmala Sitharaman on September 18, 2024.
Opening a demat account for minors can easily be done online in India. One has to spend a few minutes in uploading some KYC documents and typing in a few details. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
