Opening a Demat account for your minor son's or daughters can be availed easily through Upstox. Through the particular account, you can engage in IPO investments, and limited transactions can be carried out. Particularly, shares can be stored in such an account where there are no transactions taking place but can be gifted to such an account.

Opening a Demat Account in the Name of Minor

But keep in mind, the linking of a trading account is virtually impossible. Trading accounts can only be linked to the account of the minors only after they turn 18. However, if you're looking to open a Demat account, then you might have to follow the below-illustrated steps.

1. Forms

As a minor, they are entitled to a guardian or parent to assist them. Separate KYC forms should be filled and signed by the parent or guardian. If the child has no parents, the court will issue a guardian for the minor to open his/her trading and demat account.

2. Conditions

The demat account can only be started through the minor's parents or court-appointed guardians. There is no other alternative to this method. To learn more about this, you can rectify it with your stock broker to avail the necessary details.

3. Transferring of Account

Once the minor has turned 18 years, the account will become inoperative. All the shares, balance, and contents of the account will be transferred to the new account. If you wish to continue to use the account, you can do so by signing an application issued by Upstox by both the parent/guardian and the minor.

4. Documentation

All the filled KYC applications bundled with the PAN card details have to be submitted. These include the documentation of the parents/guardian and the minor. Do read all the terms and conditions carefully to see what you are getting yourself into.

5. Account Usage

Once opened, the parents or guardians can operate the account under their minor's name. But then linking a trading account isn't possible unless and until the minor becomes 18 years of age.

Note: Once the account is open, the minor cannot be a joint holder in the account. Once they come of age, they can become joint shareholders. Furthermore, whatever shares the minor's demat account receives, it's in the form of gifts. Also, the bank account linked with the minor's account can be changed once the minor comes of age; if not, he/she can continue to use the same bank account linked to his/her parents/guardians account.

After the opening of a minor Demat account, charges levied on the maintenance charges and other custodian charges imposed. These are standard charges charged by the stockbroker to maintain the function and stability of the account. The charges and other operational costs vary significantly from one broker to another.