Can a student open a demat account?
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- Updated On:26-May-2021
- Replies:1
Short Answer
Yes, a student can open a Demat account. In case of minor student, the student's account is operated by a guardian and if the student is 18 or above, he/she can manage the account independently. Overall, there is no age requirement.
Detailed Answer
Demat account is short form for Dematerialized account. It is that account which is required to be created if an individual is planning to start trading or hold any sort of securities. For your electronic share certificates and other collateral, a Demat Account works similarly to a bank account. Bonds, mutual funds, government securities, and shares can all be held in it. There is no paperwork involved since it is an entirely online site. It allows its users to exchange more easily on that network. In India, two depositories, NSDL and CDSL, provide Demat services. There are several advantages to getting a Demat account such as smooth settlements, the ability to obtain monetization and liquidity, and, most importantly, the assurance of safety and security.
A student is allowed and can open a Demat account. There is no age requirement if any individual wants to open an account. To open a Demat account as a student, you simply need to apply your PAN passport, identity evidence, and KYC documents.
When any student opens a Demat account, he is not allowed to have joint holders in it further his/her account can only be operated by the guardians or parents.
The exact details required for the opening of account are:
- A copy of birth certificate of the minor.
- A copy of the PAN card of the guardian or a parent who is operating the account.
- A copy of the PAN card of the minor.
- Address proof of the parent or the guardian who is operating the account.
- All the proof of the bank accounts which the minor holds.
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Discussion (0)
Zerodha as well as Groww, both allow investors to invest in Mutual funds. Groww does not charge any Account opening fees or Annual maintenance Charges but Zerodha charges Rs 200 for Account opening and Rs 300 for AMC. This makes Groww a cheaper and better option when it comes to investing in mutual funds.
Upstox is a great discount stock broker that provides excellent features at a lower cost. Some of the benefits of using Upstox are margin against shares, free equity delivery, ultra-low brokerage, bracket order, and cover order availability, mutual without any commission fee, excellent trading platforms, and more.
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You can download the account closure form the given link - Demat Account Closure Form and post it to the address mentioned in the form.
You might have read about different stock brokers in India. Here I'll review two of the most popular discount brokers in India: 5Paisa v/s Zerodha Comparison.
Yes, now you can easily invest in stocks through the Groww App. It is a popular discount stock broker firm in India who recently expanded its services to the the stock broking arena. It allows traders to invest online without any subscription fees, transaction charges or any other charges.
No, a demat account is not required for SIP or Systematic Investment Plan because a SIP can be purchased directly from an AMC (Asset Management Company), a third-party financial advisor, your bank, or other online platforms.
Zerodha is an Indian discount stock broker which provides various services to its customers. Zerodha is a paid platform with Rs 200 as account opening charges and their brokerage rates are different for each segment which are discussed in detail.
Yes, Groww app is completely safe for mutual fund, stock investing and trading. As a popular mutual fund investment plaftorm, Groww established itself quite well in the past few years. Now, it has also enetered the stock broking space so it's really good to see new entrants amid existing top discount brokers in India.
You can definitely trade or invest Rs 100 in Indian stock markets. There are no monetary requirements to enter the stock market hence you can buy any share that is trading under Rs 100. Apart from direct stock investing/ trading, there are some indirect ways to own shares over Rs 100. This can be done through Mutual Funds.