Opening an Account for Minor

Modified on Fri, 21 Jun 2024 at 04:21 PM

Who is a minor investor?

Any investor who has not attained the age of 18 years is termed as a minor investor.

Can minors maintain and operate accounts?

No. A guardian needs to be appointed to open and operate accounts on behalf of the minor.

Can minors open joint accounts with their parents or siblings?

Minor accounts can not have joint holders but minors accounts can be opened ‘On behalf of’ by natural parents or court-appointed guardians as the persons operating the account.

What are the documents required to open an account for minors?

  • Duly filled-in application form
  • Date of birth proof of minor (Birth certificate, passport, school leaving certificate or any other document evidencing the date of birth of the minor
  • KYC acknowledgement (Verified by KRA) of the guardian
  • Relationship proof of minor with a guardian, if the same is not available as part of the documents submitted for proof of DOB
  • Court order in case of court-appointed legal guardian
  • FATCA/ CRS for guardian
  • Payment of investment shall be from the minor’s bank account or from the joint account of the minor with guardian only.

Is there any limit on the amount that can be invested on behalf of the minor?

No, there is no limit on the amount invested, provided the investment is from a minor's bank account.

Can the minor operate the account after becoming a major?

Yes, the minor will be able to operate the account after attaining a majority and completing the necessary formalities.

Are there any procedural requirements to be completed on a minor becoming a major?

Following documents need to be submitted on the website-

  • PAN card
  • KYC acknowledgment or the duly filled KYC form
  • Cancelled cheque with the applicant’s name printed or the latest bank statement
  • The duly filed prescribed Minor Attain Major (MAM) form. The signature of the applicant in MAM form shall be duly attested in the space provided by the parent/guardian whose signature is registered in the records of the mutual fund against the folio or by a notary or a judicial magistrate first class or applicant’s signature may be attested by the unitholder’s bankers in the prescribed form.

What are the consequences of the delay in completing the procedural requirements for minors becoming majors?

In case the investor is not updating the records after attaining a majority, future transactions in the folio will be rejected.

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