Stock Market for Kids? The ABCs Of Opening A Minor’s Trading Account On Zerodha

Investing in stock market is not just for adults. Even young children can try their luck in stock market by opening a demat or trading account under a guardian's supervision. Typically, parents manage the account, but in their absence, a court-appointed guardian can take charge of the account.

Notably, minors cannot independently enter into contracts with stockbrokers to buy or sell securities. However, they can use the account to sell securities which they have possessed by way of investment in IPO, inheritance, corporate action, off market transfers under the following reasons

i. Gift / Donation

ii. Transfer between family members

iii. Implementation of Government / Regulatory Directions or Orders

Trading or demat accounts for minors can be opened through stockbrokers affiliated with the Central Depository Services Limited and the National Securities Depository Limited by providing basic personal details and completing KYC verification for both the minor and the guardian.

In this article, let us take a look at the documents needed and account opening procedure in Zerodha for minors.

Documents Needed To Open The Account

To open a minor's trading account, both the guardian and the minor must provide the following documents:

• PAN card (for both the minor and the guardian)
• Aadhaar card (for both the minor and the guardian)
• Minor's birth certificate
• Bank account details (of the guardian)

How To Open A Minor's Demat/Trading Account With Zerodha

Online Process

• Visit Zerodha's official website and log in with the guardian's Zerodha credentials.
• Verify the guardian's profile details and proceed.
• Enter the minor's mobile number and email ID, then verify via OTP.
• Provide the PAN and date of birth of the minor.
• Complete Aadhaar verification through DigiLocker.
• Enter the minor's bank details, accept terms, and continue.
• Complete In-Person Verification (IPV) - both the minor and guardian must be present.
• Upload required documents.
• Add nominees (optional).
• eSign using the guardian's Aadhaar.

The account will be opened within 48 working hours, and login credentials will be sent to the registered email.

Offline Process

To open the account offline, submit the following

• Equity application form, KYC form, and CKYC form for both minor and guardian.
• PAN copies (attested for the minor, self-attested for the guardian).
• Proof of birth (digital copy).
• Passport-size photographs of the minor and guardian.
• Recent bank statement and canceled cheque (for the minor).
• Minor's address proof (passport, masked Aadhaar, or other government documents).

If KYC is already completed for both the minor and guardian, PAN and address proof are not required.

In-Person Verification (IPV)

Both the minor and guardian must be present during IPV.

• To complete IPV online, visit Zerodha's official website.
• A 4-digit OTP will be generated.
• Enable the camera, display the OTP, and ensure both the minor and guardian are visible.

Account Opening Fees

There are no account opening charges for minor accounts. Once all documents are prepared, you can -

• Email soft copies to Zerodha for review.
• Upon verification, courier the documents to Zerodha's office.