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Can a demat account be opened in the name of a minor

My daughter is 17 years of age. I wish to open a demat account for her marriage (to say after 6-8 years). Q1. Is custodian account facility available in our country? Q2. Is trading in minor's account allowed before she becomes adult legally? Q3. Will income generated in next one year, till she attains maturity, be clubbed in my income or will belong to her?

Jun 13, 2016 by Pankaj, Ghaziabad  |   Financial Planning

Demat account can be opened in the name of a minor by the natural guardians (Parents) or court appointed guardians.

As a guardian you will have to fulfil all requirements for documents and KYC formalities. Proof of date of birth of the minor is a mandatory requirement.

Please also note that the Demat account becomes in-operative when the minor turns major. A separate account need to be opened when the minor turns major.

The income during this period (prior to the minor turning major) will be clubbed with the guardian’s income.

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