Can a minor sell holdings, receive corporate actions, or apply for IPOs?

Can a minor sell holdings, receive corporate actions, or apply for IPOs?

Minors can hold Demat accounts through FYERS with their legal guardian acting as the account operator. However, the features available for such accounts are limited due to regulatory and platform constraints.

Selling holdings from a minor’s Demat account

Holdings in a minor’s Demat account can be sold through FYERS platforms using EDIS (Electronic Delivery Instruction Slip) authorization. All actions must be executed by the guardian linked to the account.

FYERS Web

  • Log in to the minor's FYERS account.
  • Navigate to the Portfolio section and select Holdings.
  • Choose the stock(s) you wish to sell.
  • Click Sell and complete the order form.
  • Authorise the transaction using EDIS when prompted.

FYERS App

  • Log in to the minor’s account.
  • Tap on Portfolio and go to the Holdings tab.
  • Choose the stock to be sold and tap Sell.
  • Fill in the order details and confirm.
  • Authorise through the EDIS prompt to complete the sale.

For detailed steps, see our EDIS authorisation article.

Corporate actions applicable to minor accounts

All corporate actions linked to a minor’s Demat holdings are processed normally. These include dividends, bonus shares, splits, rights issues, and buybacks.

  • Dividends: Credited to the minor’s registered bank account.
  • Bonus/Splits: Shares are credited to the minor’s Demat account.
  • Rights/Buybacks: Require action from the guardian via the depository (CDSL/NSDL) or RTA.

IPO application restrictions for minor accounts

Yes, a minor can apply for IPOs. The application process remains the same as for a regular Demat account holder. For a detailed step-by-step guide on the application procedure, please refer to this article.

Minor Demat accounts are operated by the guardian until the account holder turns 18 and completes account conversion.

What If...

ScenarioOutcome
The guardian applies for an IPO using their UPI through the minor’s accountRejected due to name mismatch
The minor turns 18 and wants to invest independentlyAccount must be converted to a major account with updated KYC
A buyback or rights issue needs approvalThe guardian must initiate the corporate action through the depository or RTA

Last updated: 04 Aug 2025

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