How to open Zerodha Minor Account

Can I open Zerodha account for a minor child? Well, the answer is “yes”. Minors can open a demat account with Zerodha. Opening a minor account with Zerodha is completely online at zero paperwork. Do you want to open a trading and demat account for your children? If yes, here is a complete guide on how to open a Zerodha minor demat account online, account opening, and AMC fees and trading restrictions for minors account.

Guardians who already have an account with Zerodha and children with their Aadhaar card linked to a mobile number can open a minor demat account online.

By opening a Zerodha account for minors, parents can invest in stocks, mutual funds, and bonds along with their children and teach them the value of investing at a young age.

Zerodha minor account opening online| Open Zerodha Minor Demat Account Online

To open a minor account online, both the minor and guardian have their aadhaar linked to the mobile number. Also, the guardians should have an account with Zerodha to open a demat account for their kids.

Here is the step by step process on how to open a minor account online in Zerodha;

1. Visit Zerodha minor account opening page and login using the guardian’s account credentials.
2. Guardian’s KYC details will be fetched automatically, tap on continue to verify it.
3. Enter the mobile number and email ID and enter OTP to verify them.
4. PAN verification: Enter the minor’s PAN card number and Date of birth, and tap on continue.
5. Aadhaar details: Now, provide the minor’s Aadhaar number and enter the OTP sent on the registered mobile number.
6. Bank Details: Enter minor’s bank account details i.e., bank account number, IFSC code, etc.
7. Do IPV (In-person verification): For IPV, both the minor and guardian must be present in the video.
8. Document upload: Upload all the necessary documents required for minor account opening.
9. Nominee: It is optional to add a nominee to your child's demat account.
10. E-sign the AOF: Sign the Zerodha minor account opening form digitally using Aadhaar details.

Once you finishes the above process, minor demat account will be opened and activated within 48 hours. You will received Zerodha minor Demat login credentials on the registered email ID.

Zerodha minor account opening documents required

Following documents are required to open a minor trading and demat account online in zerodha;

• A recent photograph of minor
• Minor’s PAN card
• Minor’s aadhaar card
• Minor’s date of birth i.e., birth certificate, school leaving certificate, passport, etc.
• Minor’s bank account proof i.e., cancelled cheque leaf or bank statement
• Guardian’s PAN card
• Guardian’s Address proof
• Guardian’s signature
• Legal guardian letter is only required, if a guardian is anyone other than the minor’s parent.

Zerodha minor account opening form

Zerodha minor account form is available on the broker’s official website under the “downloads & resources” tab.

To open a minor account offline, the guardian has to submit the following forms to Zerodha;

Zerodha minor account opening offline

If a minor has not linked his/her aadhaar card with his/her mobile number or if a minor does not have an aadhaar card or PAN card, the minor account can only be opened offline. Also, if the guardian does not have a Zerodha account or does not wish to open an account with Zerodha, the minor's account should be opened offline.

Legal guardians who wish to open minor account offline must fill in the required information in the form for opening an account for minors, affix their signature, and attach the relevant documents. When opening an account for minors offline, guardians must sign all forms and documents on behalf of their minor child.

Once all the documents are ready, e-mail them to [email protected]. Zerodha team will review them and after the forms are reviewed, courier them all to Zerodha’s head office in Bengaluru.

Zerodha,
153/154, 4th Cross, J.P Nagar 4th Phase,
Opp. Clarence Public School,
Bengaluru – 560078

Once the team receives all the forms and documents, it may take upto 72 hours to open the minor demat account offline.

How does Zerodha minor account work?

Minor children cannot trade like others, as they cannot buy shares, mutual funds, etc.

Guardians have full control to their minor children's account. What they have to do is buy shares and transfer them to the minor’s account.

Parents or guardians can buy shares, ETFs (exchange-traded funds), mutual funds, government bonds, and SGBs (Sovereign Gold Bonds) on behalf of their kids. Once the securities are credited to their demat account, they can transfer them to their children's account via CDSL easiest or gift them.

Once they are gifted, kids can track their investment portfolio on Kite and sell shares themselves. They can also apply for IPOs through the UPI payment gateway.

As a guardian, you can also add your minor kid's account under the family accounts on the console and monitor the holdings in your kids account.

Zerodha Minor Account Trading Products

Note:Minor demat account is used to hold stocks, mutual funds, and bonds that have been acquired or gifted from guardians account. As minors cannot purchase them by their own.

Zerodha minor account trading rules and restrictions

There are several trading rules and restrictions for minors such as;

• Minors cannot buy shares of any company. Guardians have to buy and transfer shares to their minor child account using CDSL easiest and Zerodha’s gift feature.
• Minors cannot invest in mutual funds and government securities.
• Minors cannot trade in intraday and F&O
• Minors are allowed to sell investment holdings from their demat accounts.
• Minors can apply for IPO through Zerodha using UPI.
• Minors are also allowed to apply for buybacks and takeovers.
• Minors cannot pledge shares or activate segments.

Final thoughts

Open a demat account with Zerodha for your minor child today and invest in stocks, bonds and mutual funds together.

By opening an account for your child, parents or guardians can teach them how to manage money and impart financial literacy.

As a guardian, you have full control over your child's account as you can buy securities and transfer them to your child’s demat account. Minors cannot buy shares, but they can track their portfolio on the Kite and sell their holdings themselves.