Opening a Demat account for a minor follows a specific procedure.

The method for creating an account is relatively straightforward. The Guardian must include the necessary documentation to the concerned Depository Participant, including proof of identification, proof of address, photocopy of proof of age, and photographs.

After that, the DP verifies the records and enters the Minor's PAN information into the DPM scheme.

A Demat account for minors will establish after active submission and review of submitted documents. 

Restrictions of a Minor Demat Account

A Minor Demat account has some drawbacks as compared to a standard Demat account. The following are the details:

• Not permitted in certain segments: Traders with a Minor account are not eligible to trade in such segments, such as equity intraday, currency derivatives (F&O), and commodity derivative trading (F&O)

• Joint holder: A minor cannot be a joint Demat account holder.

• Transaction: When using this form of account, only delivery shares may be bought or sold.

• Trading account: A minor's Demat account cannot be compared to a minor's Trading account.

When a minor becomes a major, there is a procedure to follow.

If the term "minor" does not appear in the "Account Holder's name," the following protocol should be followed:

      1.The account holder must apply for a new KYC application form or KRA login information.

      2.The account manager must complete a new account opening form in its entirety.

      3.The DP must give the account holder a copy of the Rights and Obligations agreement and maintain a record of the acknowledgment.

     4.The Guardian's information will remove, and the account holder's signature will take its place.

If the "minor" term was present when the account was opened, it must be closed, and a new account opened.

In the event that a Guardian of a current Minor account holder passes on, the following procedure must follow.

The following protocol must follow in the event of the death of the Guardian of an existing minor account holder:

1. The original or a copy of the deceased Guardian's death certificate, properly notarized or attested by a Gazetted Officer, or a death certificate downloaded from the government's web registry with the issuing authority's digital/facsimile signature, can be forwarded to the DP. Suppose a death certificate download from the government's online server. In that case, the DP's approved official can check the records on the government's website or at the relevant registrar's office (birth/death) and keep a record of it with his signature and DP's stamp.
2. Until the new Guardian has fulfilled all formalities, the Minor's account will be frozen with the relevant purpose code.
3. The original or copy of the Court Order (duly notarized or attested by a Gazetted Officer) is needed if the Court has appointed a new guardian. Chapter 2 Account Opening CDSL DP Operating Instructions – June 2018 Page 5 of 25
4. The new Guardian must request a new account opening form that is filled out, as well as a KYC application form or KRA registration info.
5. DP must provide a copy of the Rights and Obligations contract to the current Guardian and maintain a record of the acknowledgment.
6. For the Minor's account, the current Guardian, must request a new Nomination Form.
7. The details of the Guardian of the Minor's account holder shall be appropriately updated in the CDSL scheme after review of the AOF and paperwork.
8. In the CDSL scheme, the deceased Guardian's signature must be erased, and the signature of the current Guardian must be recorded.
9. Any POA documents/details registered with the deceased Guardian's signature must be erased.