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.
- 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...
| Scenario | Outcome |
|---|
| The guardian applies for an IPO using their UPI through the minor’s account | Rejected due to name mismatch |
| The minor turns 18 and wants to invest independently | Account must be converted to a major account with updated KYC |
| A buyback or rights issue needs approval | The guardian must initiate the corporate action through the depository or RTA |
Last updated: 04 Aug 2025
Related Articles
Can NRIs apply for IPOs through the FYERS account?
Yes, Non-Resident Indians (NRIs) can apply for Initial Public Offerings (IPOs) using their FYERS Demat account—specifically when it's linked to an NRO Non-PIS (Non-Portfolio Investment Scheme) account. This setup is preferred as it avoids the complex ...
What are the charges for a minor's Demat account at FYERS?
FYERS offers zero-cost setup and maintenance for minor Demat accounts, making it simple for guardians to start long-term investments on behalf of children. However, standard DP (Depository Participant) charges apply when securities are sold from the ...
Can a minor invest in mutual funds with FYERS?
Yes, minors can invest in mutual funds with FYERS. The process is the same as for any individual account, except that all transactions are carried out by the guardian linked to the minor’s account. Mutual fund investing through FYERS Mutual funds can ...
What happens to a minor's Demat account when the minor becomes major?
When a minor turns 18, their Demat account does not automatically convert to a regular (individual) account. To continue using the account, the now-major individual must complete a formal account conversion process that includes KYC re-submission and ...
Can a minor open a trading and Demat account with FYERS?
Minors are not allowed to operate trading accounts independently. However, guardians can open a Demat account in the name of a minor and manage it on their behalf. This setup is governed by SEBI regulations and is limited to certain investment ...