Can a minor be the nominee of the Demat Account?

Yes, a minor can be nominated as the nominee of a demat account. However, since a minor cannot manage financial assets independently, a guardian must be appointed to handle the account on their behalf, if the account is transferred to them prior to reaching the age of 18.

When designating a minor as a nominee, the account holder must provide the guardian's details, including their name, relationship to the minor, and contact information. In the event of the account holder's death, the securities in the Demat account will be transferred to the minor nominee, and the appointed guardian will manage those securities until the minor turns 18. This ensures that the assets are managed securely and responsibly in the minor’s best interest.