What you should consider before opening Minor Demat Account?

Following things should be considered before opening Minor Demat Account:

• PAN card of minor is mandatory
• The legal guardian has to provide all the documents and fulfill the KYC norms.
• PAN Card of a legal guardian is required to open a demat or trading account.
• The date of birth certificate is required for a minor child.
• When minor turns major, the account becomes inoperative. A new separate account has to be opened in this case. Demat holdings can be transferred from minor account to major account.
• If paper shares are held jointly with a minor, they need to first be transferred to the minor and then to the demat account in the minor's name.
• A 3-in-1 Account (Bank + Trading + Demat Account) can be opened in the name of a minor.