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Opening CDS Account for Minors! Is that very difficult...

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  • Opening CDS Account for Minors! Is that very difficult...

    Just few days ago, i was thinking that my daughter who is sitting for this years GCE O/L Exam, should get a valuable gift, should i be giving money for her to spend with her friends or buy something else. Then i was thinking why not invest some amount her name.
    Surprise Surprise i am not able to open at least open a minor account even under a guardian responsibility until she reaches 18.

    Is it logical, when Banks are ready to open minors accounts, CSE is not having such facility.

    Can someone explain why CSE is not exploring such opportunity.

    I would like to get different view points from our members.

    And if we try we will be able to change ...... for the better.

    As parents why not we encourage our children to start investing from younger age.

    Instead depositing in savings account, we can look at CSE.

    Please share your thoughts and we can send a letter to CSE as a petition!

    Why is it difficult for the CSE to come out of a strategy.

    Why should we invest through Unit trusts, when we can make better judgment as parents.

    If we try we can change the way CSE thinks.

    We can write to the Finance Minister too.

    Thanks
    "The best values today are often found in the stocks that were once hot and have since gone cold"

  • #2
    Good discussion. I always felt we should have a subject for the investment alone in our academic school syllabus. This way, younger generation would get valuable knowledge on valuing business, investment options, behavioral impact etc..

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    • #3
      Thanks PP.

      Just googled to get some understanding from our neighboring country INDIA.

      These facts can be used to request the authorities to consider, if they wish to go ahead.

      1. Minor is someone below 18
      2. Minor Account can be opened only under natural guardians Father or in absence then the Mother, in case both are demise, court appointed guardian.
      3. Guardian can open, operate & close the investment account, bank account on the minors name.
      4. KYC form need to be signed by minor and guardian (means 2 forms)
      5. When minor turns major, the minor account automatically becomes non operative, and would require to transfer the shares to a major account.
      6. Trading Account+CDS Account+Bank Account (Minor) could be opened (For the purposes of Taxes Adult Income will be considered including the Minors Account) We could set Adult Account for this purposes
      7. IntraDay trading not allowed (T+1) But T+3 or Equity Delivery basis allowed, meaning, minor accounts can not used for same day trading, i think this is very good to have certain restrictions to preserve the essence. After-all one need to consider the purpose of Minor Investment Account. Some may beg to differ... but we can agree as it depends on person to person.
      8. A minor can not have joint CDS account, this need to be separate.
      9. Minor turns major, he has 2 options, close and open new or convert the minor account with updated information, there by effectively deleting/amending the guardian details such as in the Trading Account, Bank if adult account is used.
      10. Parents/court appointed can open many accounts depend on the no of children under them, provided they satisfy earlier provisions. (Refer point #2 onward)
      11 For the purposes of Taxes, Minors Income is added to Father/Mother or Guardian, Minor need not file separate tax returns.
      "The best values today are often found in the stocks that were once hot and have since gone cold"

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