Minors investing in equity stocks: 5 things to know

1.Minors can invest in the stock market but the demat account, trading account and bank account have to be operated by the guardian.
2.Guardian has to be the father or in his absence mother. In absence of both, father or mother the guardian can be appointed by a court.
3.Minors cannot buy stocks. Instead, the guardian can either transfer existing stocks in their demat account or buy stocks and transfer them into the minor’s account.
4.Minors can carry out sale of securities through their trading account which they have got by investment, inheritance, corporate action, gifts, transfer between family members or government orders.
5.Minors cannot be a joint holder in any demat account.


Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.