Yes. A minor can have a demat account in their own name, operated by a parent or legal guardian until the minor turns 18. The shares belong to the child, while the guardian handles all instructions and signatures.
To open one, you usually need the minor’s PAN card, proof of date of birth such as a birth certificate, and the guardian’s KYC documents. The bank account linked to it is typically the minor’s own account, also operated by the guardian. Brokers have slightly different requirements, so ask yours for their checklist.
There are limits on what the account can do. Generally only delivery buying and selling is allowed. Intraday trades, futures, options and margin are not permitted for minors. Shares can also come into a minor account through gifts or inheritance.
On taxes, income from a minor’s investments is often clubbed with the parent’s income, though there are exceptions. Speak to a CA about your family’s situation before investing large amounts in a child’s name.
A practical tip: when the child turns 18, the account must be converted to a regular one with fresh KYC in their own name. Plan this before college admissions, because a frozen account at the wrong time is a headache.
If your teenager wants to understand what they own, our Diploma in Stock Market is a good starting point once they are old enough to attend classes.