Stock trading platform Zerodha on Thursday announced that users can now open an account for their children and invest in stocks, mutual funds, and bonds.
In a video shared on social media platform X, the stock trading app explained in detail how a user can open a minor Zerodha account.
The parents have full control over their child’s minor account. Their chldren cannot buy securities on their own. The parents have the option to either purchase the securities and then gift it to the child, or the latter can request to buy securities and gift it to them.
Zerodha allows minors to only track their portfolios and sell the holdings. The minor accounts cannot carry out intra-day as well as futures and options (F&O) trading. There is no account maintenance charge for the minor accounts.
Zerodha platform also allows parents to manage their own portfolio along with that of the minor.
Documents allowed for minor Zerodha accounts
To open a minor Zerodha account for the child, digital copies of these documents are needed:
1. Minor’s PAN card
2. Minor’s Aadhaar card
3. Birth certificate
4. Photo
5. Cancelled cheque
6. Guardian letter
7. Guardian’s PAN
8. Guardian’s Address Proof
9. Guardian’s signature
How to open a minor Zerodha account?
To open a minor Zerodha account for a child, these are the steps to be followed:-
STEP 1: Log on to signup.zerodha.com/minor and login using the guardian’s Zerodha account credentials.
STEP 2: Now, click on ‘Continue’ to verify the guardian’s profile. If the profile needs updation, see How to modify the guardians profile details while opening a minor account? After updating the details, you can now open the account online.
STEP 3: Enter the mobile number and email ID and verify using OTP. You need to enter PAN and the date of birth of the minor. Click on ‘Continue’.
STEP 4: Enter the Aadhaar number of the minor on the DigiLocker page. Select the ‘Terms and Conditions’ checkbox and hit the ‘Continue’ button.
STEP 5: After entering the bank account details of the minor, you need to select the ‘Terms and Conditions’ checkbox and click on ‘Continue’.
STEP 6: Now, Zerodha will ask for an In-Person Verification (IPV). For this process, both the guardian and minor must be present.
STEP 7: After uploading the required documents, select ‘Continue’. You can add the nominee details now or later. eSign using the guardian’s Aadhaar details.
After the process is completed, the account will be opened within the next 48 hours.