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While you need to be 18 years old to open a Demat account, you can open one for minors as a guardian or parent. Even if the minor holds this account, they cannot trade in the stock market. Only you, as a parent or a guardian, can operate it until the minor becomes an adult. But you can transfer shares to the minor’s demat account. 

The earnings from these accounts are added to your income. This means the minor need not pay tax on the earnings. As there is no minimum age to open a Demat account, they could be used to teach the importance of investing to minors.

How to Open a Demat Account for Minors

On Bajaj Markets, you can open a Demat account at affordable brokerage fees starting at ₹5 per order. Follow these steps to open an account:

  1. Click on ‘OPEN ACCOUNT’ on this page

  2. Add your personal and bank details 

  3. Browse and choose from the subscription plans available 

  4. Take a selfie video to complete eKYC 

  5. Upload the required documents

  6. Complete the e-sign process through Aadhaar


Note: Check the process and additional steps required for Demat accounts for minors.

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Benefits of a Demat Account for Minors

Opening this account could help minors understand the capital market early on. They may also benefit from its growth potential. Here are some key advantages of opening:

1. Helps in Financial Planning

The returns earned from shares and securities could help plan the child’s future. As a parent or guardian, use the gains to finance education fees, marriage, and more.

2. Facilitates Financial Literacy

A Demat account for minors could help teach them about mutual funds and securities. This may improve their understanding of the stock market and concepts like risk. Such learnings could help them in the future when they take control of their account once they’re older.

3. Convenient Transfer of Shares

You can transfer company shares in the name of the minor, which they can sell after becoming an adult. If the assets are stored in the account for a long period, the minor may benefit from capital appreciation and enjoy higher potential returns.

Documents Required for Opening a Demat Account for Minors

The paperwork needed to open this account for minors differs slightly. Here are some documents you could keep handy: 

  • Demat account opening form

  • Birth certificate of the minor

  • Photographs of the minor and the parent/guardian

  • PAN card copies of both the minor and the parent/guardian

  • Proof of identity and address in the form of an Aadhaar card, bank passbook, passport, bank statement, driving licence, and voter ID of the parent/guardian 

  • Bank account details and statements of the parent/guardian


The documents required may differ across brokers or depository participants. Check their websites for the paperwork required to open a Demat account for children.

Frequently Asked Questions

Who is considered a minor?

Under the Indian Majority Act of 1875, any person below the age of 18 years is considered a minor.

Who can open a Demat account for minors?

You can open a Demat account for children if you are a parent or a court-appointed guardian.

Who operates a Demat account for minors?

A parent or guardian must operate a Demat account until the minor attains the age of 18 years.

Who is eligible to become a guardian?

A guardian can either be a parent or a court-appointed guardian.

What happens when a minor with a Demat account becomes a major?

When the minor turns 18 years old, they can use the Demat account independently. But they need to confirm the balance in their account and complete some formalities.

Are there any tax implications associated with a Demat account for minors?

The gains earned through this account are added with the income of the parents or guardians.

What is the minimum age to open a Demat account for minors?

There is no minimum age requirement to open this type of Demat account. If you are a parent or a guardian, you can open an account for minors and operate it till they become an adult.

Can I open a Demat account for minors as a joint account?

No, it is not possible to open this type of Demat account as a joint account.

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