Zerodha offers to open only Demat accounts for the minors. You cannot open a trading account for a minor with Zerodha unlike, other brokers like ProStocks. With ProStocks, you can open a trading and Demat account for the minors to invest in shares (Equity Delivery only), IPO, and mutual funds.
A minor cannot buy or sell shares in Zerodha. The guardian/parent can trade through their trading account and then transfer the securities to the Demat account of the minor as a gift. The guardian can also apply in IPOs using Zerodha Minor Demat Account through banks offering 3rd Party IPO applications (SBI, Axis Bank). But these shares cannot be sold from Zerodha Minor account.
As per Zerodha, \”Zerodha Minor account is only to hold shares and mutual funds that are gifted, transferred to or acquired through an IPO.\”
Zerodha also provides an option to gift shares to the minor through Zerodha Console.
Features of Zerodha Minor account:
- Only Demat account to hold shares received by way of a transfer, gift, or IPO.
- No trading account to buy or sell shares.
- Offers online and offline Demat account opening for a minor.
- Does not allow minor to invest in mutual funds through Coin.
- Allows off-market transfer to deposit shares/mutual funds in minor\’s Demat account.