Demat Account for Minor in India: Rules, Guardian Role and What Can Be Held
- August 17, 2026
- Posted by: Kunal Singla
- Category: Market
A demat account for minor in India is operated by a natural guardian until the minor turns 18. Trading is restricted. Securities can be held through inheritance, gifts or IPO allotments. SEBI RA INH000013776.
Quick Answer
A demat account for minor is a SEBI-regulated demat account opened in the name of a person below 18 years of age. The account is managed and operated by the minor’s natural guardian (parent or court-appointed guardian) until the minor reaches majority. A demat account for minor can hold equity shares, bonds, units of mutual funds and securities received through inheritance or corporate actions. While the minor owns the securities, all transaction authorisations must come from the guardian. On reaching age 18, the account must be updated to a regular account.
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Can a Minor Have a Demat Account in India?
Yes. A demat account for minor is permitted under SEBI regulations and CDSL and NSDL guidelines. The minor is the beneficial owner of the securities in the such an account, but the guardian is the authorised representative who operates the account on the minor’s behalf. The guardian’s signature is required for account opening, account modifications and all transaction authorisations.
A demat account for minor is typically opened for children who receive shares as gifts, inherit securities from family members or are allotted shares in an IPO applied in their name. A such an account is not primarily intended for speculative trading by the guardian; it is a holding vehicle for the minor’s rightful securities.
Who Can Be the Guardian for a Demat Account for Minor?
For a demat account for minor, the natural guardian is the preferred guardian and is typically the child’s father or mother. In cases where both natural guardians are deceased or unavailable, a court-appointed guardian may act for the minor’s such an account.
The guardian’s KYC documents (PAN, Aadhaar, address proof) are required alongside the minor’s documents when opening a demat account for minor. The guardian’s name is registered in the account as the operating authority. The minor’s PAN (if available) or date of birth is used to identify the minor in the such an account.
What Can Be Held in a Demat Account for Minor?
A demat account for minor can hold equity shares, government securities, bonds, units of exchange-traded funds and mutual fund units that are linked to the minor’s PAN. Securities received through inheritance, corporate actions (such as bonus shares on existing holdings) or IPO allotments in the minor’s name can all be credited to a such an account.
| Securities category | Permitted in demat account for minor? | Notes |
|---|---|---|
| Equity shares (inherited or gifted) | Yes | Must be held in the minor’s name with guardian authorization |
| IPO allotments | Yes | Minor’s PAN and demat account for minor must be provided in the application |
| Mutual fund units (via demat) | Yes | Linked MF folios can be held in demat account for minor |
| Active equity trading (buy/sell) | Restricted | SEBI guidelines restrict active trading through a demat account for minor |
| Derivatives (F&O) | No | F&O trading is not permitted in a demat account for minor |
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What Happens to a such an account at Age 18?
When the minor reaches 18, the such an account must be converted to a regular individual account. The DP requires the new adult account holder to submit fresh KYC documents (PAN, Aadhaar, address proof, bank account details and a recent photograph) to update the such an account to a regular account.
Until the conversion is completed, the such an account remains in restricted operation mode. SEBI and the depository require all demat accounts for minor to be updated promptly when the account holder turns 18. The guardian’s authority to operate the such an account ceases automatically at the date of the minor’s 18th birthday.
Opening a such an account: Documents Required
Opening a such an account requires the following documents: the minor’s birth certificate (proof of age), the minor’s PAN (if available) or a declaration that the PAN is not yet issued, the guardian’s valid identity proof (PAN, Aadhaar), the guardian’s valid address proof, a recent passport photograph of the minor and the guardian, and the minor’s bank account details (if available for dividend credits).
If the minor does not yet have a PAN, many DPs accept the birth certificate as the primary document and process the such an account without a PAN. However, having the minor’s PAN linked to the such an account ensures smooth processing of dividends, corporate actions and future investment compliance.
such an account at Univest
Univest is a SEBI-registered platform (SEBI RA Reg. No. INH000013776) linked to CDSL. For current information on whether and how Univest supports a such an account, refer to the official Univest website at univest.in or contact Univest customer support. The process and eligibility for a such an account may vary by broker.
Given that the guardian must manage a such an account, the guardian’s own account at the same broker may be required in certain configurations. Verify the current documentation requirements before opening a such an account at Univest or any other broker.
Conclusion
A such an account is a practical and SEBI-compliant way to hold and protect a child’s securities in electronic form. The guardian manages and operates the such an account until the child turns 18, at which point the account must be converted to a regular individual account. Keep the minor’s KYC documents updated, ensure the minor’s PAN is linked to the such an account and plan for a smooth conversion process well before the minor’s 18th birthday.
Download the Univest iOS App or Univest Android App to open your demat account and track your portfolio.
Disclaimer: Data and figures in this article are sourced from publicly available information including SEBI circulars and depository guidelines. These may not reflect the most current operational procedures of your specific depository participant. Please verify all process details with your DP or broker before initiating any account action. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Can a minor have a demat account in India?
Ans. Yes. A such an account is permitted by SEBI and operated through a guardian until the minor turns 18. The minor is the beneficial owner of the securities. A such an account can hold equities, bonds, IPO allotments and inherited securities, but active trading is restricted and F&O is not permitted.
Who can operate a demat account for minor?
Ans. A such an account is operated by the minor’s natural guardian (parent or court-appointed guardian). The guardian provides their own KYC at the time of opening and authorises all account actions. The guardian’s authority to operate the such an account ceases when the minor turns 18 and the account is converted to a regular account.
What can be held in a demat account for minor?
Ans. A such an account can hold equity shares received through inheritance or gifts, IPO allotments in the minor’s name, government securities, bonds and mutual fund units linked to the minor’s PAN. Active equity trading is restricted. Derivatives (F&O) are not permitted in a such an account.
What happens to a demat account for minor when the child turns 18?
Ans. When the minor turns 18, the such an account must be converted to a regular individual account by submitting fresh KYC documents to the DP. Until the conversion is complete, the account remains in restricted mode. The guardian’s authority to operate the such an account ends automatically on the minor’s 18th birthday.
What documents are needed to open a such an account?
Ans. Documents needed for a such an account include the minor’s birth certificate, the minor’s PAN (if available), the guardian’s PAN and Aadhaar, address proof, recent photographs of both the minor and the guardian, and a bank account linked to the such an account for dividend credits. Contact your DP for the current checklist.
Can a minor apply for an IPO using a such an account?
Ans. Yes. A minor can apply for an IPO using a such an account, provided the application is submitted by the guardian on the minor’s behalf. The minor’s PAN and such an account details must be provided in the IPO application. Allotted shares are credited to the such an account.
