Minor account in Zerodha – Process, Charges, Documents

Published on Monday, September 6, 2021 by Chittorgarh.com Team

Zerodha offers to open only Demat accounts for the minors. You cannot open a trading account for a minor with Zerodha unlike, other brokers like ProStocks. With ProStocks, you can open a trading and Demat account for the minors to invest in shares (Equity Delivery only), IPO, and mutual funds.

A minor cannot buy or sell shares in Zerodha. The guardian/parent can trade through their trading account and then transfer the securities to the Demat account of the minor as a gift. The guardian can also apply in IPOs using Zerodha Minor Demat Account through banks offering 3^rd Party IPO applications (SBI, Axis Bank). But these shares cannot be sold from Zerodha Minor account.

As per Zerodha, “Zerodha Minor account is only to hold shares and mutual funds that are gifted, transferred to or acquired through an IPO.”

Zerodha also provides an option to gift shares to the minor through Zerodha Console.

Features of Zerodha Minor account:

• Only Demat account to hold shares received by way of a transfer, gift, or IPO.
• No trading account to buy or sell shares.
• Offers online and offline Demat account opening for a minor.
• Does not allow minor to invest in mutual funds through Coin.
• Allows off-market transfer to deposit shares/mutual funds in minor's Demat account.

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Zerodha Minor Account Opening

You can open an account for a minor with Zerodha either online or offline. It is a 7-step process that gets done using the Kite credentials of the guardian.

Zerodha Minor account opening charges

• Demat Account Opening: Rs 0
• Demat AMC for Minor Account: Rs 300 per year

Steps to open Zerodha Minor Account

To open a minor account with Zerodha, the legal guardian should have an account with Zerodha. If you have access to Zerodha Kite, use the below steps to open a Minors Demat Account with Zerodha:

1. Visit https://signup.zerodha.com/minor/
2. Click on ‘Continue with Kite' and log in using your Kite credentials.
3. Input the PAN and date of birth of the minor and click on Continue.
4. Click on Continue to DigiLocker and enter the Aadhar number of the child.
5. Enter the OTP received on the registered mobile number of the guardian.
6. Click on Allow to grant Digilocker access to Zerodha.
7. Enter the names of the parents and the relationship of the guardian with the minor.
8. Enter the bank details of the minor like IFSC Code, MICR, and account number.
9. Complete IPV by capturing the photo of the minor and the guardian with the flashed code written on a piece of paper.
10. Upload the documents.
11. E-sign the application form based on the guardian's Aadhar.
12. Enter the Aadhar number of the guardian.
13. Enter the OTP received on the registered mobile no.
14. Verify the OTP to complete the account opening process.

Note:

• If the guardian's KYC is not verified, you also need to provide the KYC documents for the guardian along with the documents of the minor.
• The submitted application gets verified by Zerodha. On successful verification, Zerodha provides the login credentials for the minor through email. This process may take between 2 to 7 days.
• It is important to note that the account opened for a minor in Zerodha is only the Demat account to hold the shares and mutual funds that are either gifted to them, transferred to them, or acquired through an IPO. It is not a trading account. You cannot sell the shares.

Documents required for Zerodha minor account opening

• ID proof (PAN card).
• Address proof (Aadhar card).
• Bank proof (Cancelled cheque, latest bank statement).
• Birth certificate (required in case of offline account opening)

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Zerodha Minor Account Opening Demo

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Conclusion

Zerodha offers to open a Demat account only for minors on special requests by the guardian who already has an account with Zerodha. You can open the account to hold the shares that are received by the minor as a gift or through IPO or from the guardian. You cannot sell shares or trade through the minor's account in Zerodha.