Opening Demat Account for Minors
Demat account opening for minor can be done in any of the two depositories in India. Demat (de materialization) is a process to convert securities held in physical form to electronic form. In India two depositories namely NSDL and CDSL offers depository services through SEBI registered depository participants. A minor can open demat account and hold shares only through his guardian. The minor shall be the first and sole account holder in the account. Joint account can not be opened with minor account. Guardian can be natural guardian or a court appointed guardian). In case of natural guardian, minor attains majority at the age of 18 years. If guardian is court appointed, majority is attained at the age of 21 with Infosys share price.
Demat account opening for minor can be done by submitting documents of the guardian. Documents required for the guardian are proof of identity, proof of address, PAN card and the photograph. Date of birth certificate either in original or attested photocopy and PAN card of the minor are also required. After verifying all the details, if depository participant satisfies with the documents submitted, account will be opened in the name of the minor. Till minor attains majority it will be operated by the guardian.
After attaining the majority, depository participant will send advisory to minor turned major to submit fresh account opening form along with required KYC (Know Your Client) documents. Minor turned Major need to submit his/her PAN (Permanent Account Number), Photograph and other necessary KYC documents. Signature of the guardian will be replaced with signature of the minor turned major. A fresh DP-Client agreement need to be executed by the client. Fresh nomination details also can be updated during this process. If any standing instruction with future execution date are pending given by guardian, they can be executed only after giving confirmation for execution by the client. If the account is under suspension due to non-compliance requirement of submitting Permanent Account Number, depositing it along with other documents makes it active with Infosys share price.
Although only two depositories function in India, demat account can be opened with any of their registered depository participants near to your place. Some of the points to consider in selecting depository participant are charges, services offered, reach ability, reputation, experience in the field. Annual Maintenance Charges (AMC) need to be paid on the account which may be charged monthly, quarterly or yearly. Some depository participants offer life time free demat account for one time small fee. As demat account opening for minor is done at early age, consider opening an account with life time free maintenance as it saves huge recurring costs in long term.
Before approaching depository participant for demat account opening for minor one should obtain Permanent Account Number (PAN) of the minor. Approach any TIN facilitation centers of NSDL or apply online. Charge for applying and getting PAN Card is 96 rupees. In India, Income Tax department issues PAN Card and one individual can apply only for one card with Infosys share price.