uTrade AlgosYes, a trading account can be opened in the name of a minor, but only for selling securities acquired through IPOs, inheritance, corporate actions, or permitted off-market transfers.
Trading Account for Minors – Restrictions & Purpose
A trading account in a minor’s name can be opened but is subject to strict limitations. It can only be used for the sale of securities that the minor has acquired through:
- Investment in IPOs
- Inheritance
- Corporate Actions (such as stock splits, dividends, or bonus shares)
- Off-market transfers under specific conditions, including:
- Gift or donation
- Transfers between family members
- Implementation of government or regulatory directions/orders
The guardian operates the account on behalf of the minor until they turn 18 years old. After that, the minor must complete a KYC process to convert the account into a regular trading account.
Interested in opening a minor account with Share India? Click here!