Demat Account- Open a demat account in the name of children, and get these benefits, the method of trading is also different.

If we talk about recent years, then the youth has seen a desire to invest in the stock market, but before investing in the stock market, we need to have a demat account to invest in shares, mutual funds, ETFs, and bonds. Demat account is necessary for parents wishing to invest on behalf of their children, especially for minors. Today, through this article, we will tell you how you can open a demat account in the name of your child and what are its benefits-

No age limit:

There is no minimum age to open a demat account. Parents can start the process for their children at any time.

Parental control:

The demat account of a minor is opened in the name of the child, but it is managed by the parents. The account is not a joint account; it is entirely in the name of the child, but the parents have control.

Documents Required:

Parents’ PAN Card: For identity verification.

Aadhaar Card: To establish address.

Birth Certificate: Must contain parents’ names to confirm guardianship.

Minor’s Bank Account Details: Required to link the demat account.

Photographs: Recent photographs of both the minor and parents.

KYC Compliance: KYC, PMLT, and FATCA documents are mandatory for both parents and minors.

Signature Requirement:

Parents must provide their signatures to open a demat account for their child. This can be done online or offline.

Investment Limits:

The minor cannot buy or sell shares directly in the market. Transactions are managed through the parent’s trading account, and shares can only be held in the minor’s demat account after being received as a gift.

Buying and selling shares:

Minors cannot directly engage in trading, but shares gifted to them can be held in their demat account.