Can a demat account be opened for a minor?

Yes, you can open a demat as well as a trading account in a minor’s name. Anyone who is under the age of 18 years is considered a minor. A minor’s demat account is managed by a guardian until the child turns 18. Usually, the guardian is the father, or in his absence, the mother. If both parents are unavailable, a court-appointed guardian can operate the account. Here are the rules of operating a minor’s demat and trading account:

• While the account is opened under the minor’s name, a guardian (parent/legal guardian) operates it. Minors cannot trade independently.
• Only delivery-based equity investments can be done in a minor’s trading account. No intraday or margin trading is permitted.
• Trading in equity derivatives (F&O) is not allowed in a minor’s account.

A minor demat account is a simple way to help your child start their investing journey early. It lets parents invest in their name, build long-term wealth, and teach them the value of money early on. While the account is managed by a guardian until they turn 18, the benefits can last well beyond — setting them up for a confident financial future..