Children can also invest in the share market… Know here how to open a Demat account, the method of trading is also different.

Utility News Desk!!! Without a Demat account one cannot invest in shares, mutual funds, ETFs and bonds. If a parent wants to invest in shares in the name of their child, they will need a small demat account. Demat account can be opened online and offline even for minors. Let us know what are the things required to open a demat account for a minor.

Age for opening Demat account: There is no age limit for opening a Demat account. Investment can be made by opening a demat account at any age. Demat account of a minor can be opened with the parents. Parents can open a demat account in the name of the child at any time by linking it with them, which will not be a joint account.

What documents are required: You will need certain documents to open a demat account in the name of the child. In this you can provide parents' PAN card, Aadhar card for address, driving license and other documents. Apart from this, birth certificate, on which the name of the parents is also mentioned, SEBI KYC and bank account of the minor will also be required.

A parent's signature is required to open a demat account for a minor. The signature can be done both online and offline. For this, Aadhar card of parents will be necessary. Along with the photo of the minor, the photo of the parents will also have to be uploaded in the demat account. KYC, PMLT and FATCA are mandatory for both parents and minors.

You cannot buy shares directly from the market; Investing and selling shares, mutual funds and ETFs requires a demat-trading account. However, no shares can be purchased in the stock market from a small demat account. The Indian Contract Act 1872 states that no minor can enter into financial transactions. The demat account will be controlled by the parent.

How to buy and sell shares from a minor's demat account: A minor cannot invest directly in the stock market or mutual funds through a demat account. Shares received as gift can be kept in the demat account of the minor and these shares can be sold under the trading cum demat account of the minor.