rohith
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Can a minor eligible to open SBI online demat account? If yes, how it will be possible?
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narahari
answered
a) Demat account can be opened in the name of a minor child by the natural guardian (parents) or court-appointed guardians only.
b) The guardian needs to fulfill all requirements for documents and KYC norms to open the account in the name of the minor.
c) A minor cannot be a joint holder in a demat account. The demat account can be held only in the name of the minor.
d) Date of birth of the minor is mandatory required, with proof. The account becomes inoperative when the minor turns major.
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CA Sandeep Bohra
answered
Dear Friend,
a) Demat account can be opened in the name of a minor child by the natural guardian (parents) or court-appointed guardians only.
b) The guardian needs to fulfill all requirements for documents and KYC norms to open the account in the name of the minor.
c) A minor cannot be a joint holder in a demat account. The demat account can be held only in the name of the minor.
d) Date of birth of the minor is mandatory required, with proof. The account becomes inoperative when the minor turns major.
e) On attaining major status, a new demat account needs to be opened after completing all documentation. The erstwhile holdings can then be transferred to the new account.
f). If shares are held jointly with a minor in paper form, they need to first be transferred to the minor and then to the demat account in the minor’s name.
g). Through the Minor’s Trading account only delivery of shares could be bought & sold.
