How-to minor demat account IPO Zerodha guardian ASBA SEBI

How to apply for an IPO from a minor's account on Zerodha

From WebNotes, a public knowledge base. Last updated . Reading time ~11 min. Level: Intermediate.

A minor can apply for an IPO through a Zerodha minor demat account, but the application is made in the minor’s own name and PAN, operated by the guardian, and it settles through the bank’s net-banking ASBA rather than UPI, because a minor cannot hold a UPI ID. A Zerodha minor account is a demat account for a person under 18, operated by a natural or legal guardian under the Hindu Minority and Guardianship Act 1956 or the Guardians and Wards Act 1890. Zerodha states that such an account can apply for IPOs, buybacks and takeovers. This guide covers the guardian-operated mechanics, the minor’s PAN requirement, the one-application-per-PAN rule that lets a family apply under several PANs, and the bank ASBA constraint that replaces the usual UPI flow.

The minor account is heavily restricted by design: it cannot buy on the secondary market, trade intraday or in futures and options , or take part in an offer for sale . What it can do is receive shares through an IPO, a gift or a transfer, and sell what it already holds. Read Zerodha minor demat account for the full account reference, and how to apply for an IPO on Kite web for the standard adult flow that this guide departs from.

Conflict-of-interest disclosure. This guide is published by the WebNotes Editorial Team for informational purposes and is written independently. WebNotes operates a Zerodha account-opening referral programme, disclosed on the pages that carry the referral link; this guide does not carry it and earns no referral commission from the procedure described here.

Step-by-step procedure

The numbered box at the top sets the sequence. The detail below expands the two parts unique to a minor’s application: the bank ASBA route, and the one-application-per-PAN arithmetic across a family.

1. Confirm the minor account is IPO-eligible

A Zerodha minor account is a guardian-operated demat that can receive IPO allotments. Confirm the account is active and that the minor holds their own PAN; Zerodha requires digital copies of both the minor’s and the guardian’s PAN at account opening, and the IPO application uses the minor’s PAN. The guardian who opened the account must sign all forms, so the same guardian must place the application.

2. Find the minor’s demat ID for ASBA

The standard adult flow runs through Kite and UPI. A minor cannot use it, because a minor cannot be issued a UPI ID and the UPI ASBA mandate has to be raised against a UPI ID in the applicant’s own name. The application therefore goes through the bank’s net-banking ASBA facility, which is documented in how to apply for an IPO without UPI on Kite . From the minor’s Console , under the demat section, copy the 16-digit beneficiary account number. You will enter this, with the depository as CDSL and the DP name as Zerodha, in the bank’s ASBA form.

3. Open the bank’s net-banking ASBA facility

Log in to the minor’s own bank net banking and open the IPO or ASBA section. The bank account, the demat and the PAN must all belong to the minor; a guardian cannot block the money from their own account against the minor’s demat, because the ASBA self-certification requires the blocking account and the applicant PAN to match. Support for a minor account varies by bank, and Zerodha publishes no list of banks that accept minor ASBA, so confirm with the bank in advance.

4. Enter the issue, PAN and demat details

Select the open issue, enter the minor’s PAN and the 16-digit demat ID, and choose the investor category, normally the retail individual category for a bid up to Rs 2 lakh. The bank’s self-certified syndicate process runs a third-party verification matching the PAN against the demat before accepting the bid; a mismatch causes a silent rejection. Confirm the minor’s PAN is correctly linked to the demat before you apply.

5. Enter quantity, price and submit

Enter the quantity in multiples of the lot size , the form rejects any other figure, and a price inside the price band , or pick cut-off . Submit. The bank blocks the application amount in the minor’s account as a lien; the available balance falls by the block while the money stays in the account and is debited only on allotment.

6. Verify the block and the allotment

Confirm the bank has placed the lien on the minor’s account, then track the bid to allotment through the registrar or the exchange. Allotted shares credit to the minor’s demat; the block on any unallotted amount releases after the basis of allotment is finalised, covered in how to release blocked IPO funds . The shares are held in the minor’s name and operated by the guardian until the minor attains majority.

The one-application-per-PAN rule across a family

SEBI’s allotment process deduplicates on PAN: where two or more applications are made for the same issue under a single PAN, all of them are rejected, with no partial acceptance. This is why a household cannot multiply its retail allotment odds by submitting several bids under one person’s PAN. It is also why the minor route is useful. A minor holds a distinct PAN, so the guardian applying once under their own PAN and once under the minor’s PAN for the same issue is two separate investors, both valid. A family of four with four PANs, including the minor’s, can therefore submit four independent retail applications, each with its own chance in the draw of lots when the issue is oversubscribed.

The limit is one application per PAN, not one per family or one per bank account. The constraint that bites for a minor is operational: the money must be blocked in the minor’s own bank account, so the household needs a funded bank account in the minor’s name, not just the minor’s demat.

The bank ASBA constraint and why UPI is unavailable

The UPI ASBA flow that makes an adult Zerodha IPO application a two-minute task on Kite does not exist for a minor. UPI ASBA requires a UPI ID, and a UPI ID requires a bank account that the holder operates directly, which a minor under 18 does not have in the form the UPI rails expect. The bank net-banking ASBA route is the documented substitute. It is slower and bank-dependent: the guardian logs into the minor’s bank net banking, enters the demat ID and PAN, and the bank blocks the funds. Because Zerodha does not maintain a list of which banks accept ASBA for a minor account, and several large banks have inconsistent support, confirm with the specific bank before the issue opens rather than discovering at 4 PM on closing day that the bank’s minor-account ASBA path does not work.

For complex situations, a minor account holding shares from multiple sources or an upcoming majority conversion, the structure-specific requirements vary; verify with Zerodha’s support desk and the bank’s compliance channel before executing.

When the minor turns 18

On attaining majority the minor account cannot continue as a minor account. It must be converted to a regular account in the now-adult holder’s name through Zerodha’s majority-conversion process, which the holder completes with fresh KYC in their own name. The holdings, including any IPO allotments, carry over to the converted account with their original cost of acquisition and holding period intact, so a later sale is taxed as if the shares had never moved. Read Zerodha minor demat account for the conversion steps and the documents the conversion needs.

See also

External references

References

  1. Zerodha support, minor account FAQs (a minor account can apply for IPOs, buybacks and takeovers; cannot trade intraday or F&O or take part in an OFS; as of 21 June 2026).
  2. Zerodha support, applying for an IPO without UPI (net-banking ASBA using the 16-digit demat ID; depository CDSL; DP name Zerodha).
  3. SEBI public-issue allotment rules: multiple applications under a single PAN are rejected; deduplication is on PAN at the registrar stage.
  4. Hindu Minority and Guardianship Act 1956 and Guardians and Wards Act 1890 (basis of guardianship for a minor’s account).
  5. Income Tax Act 1961: PAN requirement for securities-market transactions; structure-specific requirements vary, so verify with the AMC or broker compliance channel before executing.

WebNotes Editorial Team prepares factual how-to guides based on publicly available regulatory documents and broker disclosures. WebNotes is not affiliated with Zerodha Broking Limited. Structure-specific requirements for minor accounts vary; verify current requirements at support.zerodha.com and with the minor’s bank before applying.

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Frequently asked questions

Can a minor apply for an IPO through Zerodha?
Yes. Zerodha states that a minor account can apply for IPOs, buybacks and takeovers. The account is a guardian-operated demat; the guardian places and signs the application, and any allotment credits to the minor’s own demat.
Whose PAN is used for a minor's IPO application?
The minor’s own PAN. A minor must hold a PAN to open the demat and to apply for an IPO, and the application is made in the minor’s name and PAN, not the guardian’s. The guardian operates the account but does not substitute their PAN.
Can a guardian apply for the same IPO under both their own PAN and the minor's?
Yes. The one-application-per-PAN rule operates per PAN. A guardian’s own PAN and the minor’s PAN are two separate investors, so a guardian may apply once under each for the same issue. Two applications under a single PAN are all rejected.
Why can't a minor's IPO application use UPI?
A minor cannot be issued a UPI ID, so the UPI ASBA route is unavailable. The application is placed through the bank’s net-banking ASBA facility, where the minor’s bank account, demat and PAN must all be in the minor’s name.
Which banks support ASBA for a minor account?
Zerodha publishes no list of banks that support IPO ASBA specifically for a minor account, and support varies by bank. Confirm directly with the minor’s bank that its net-banking ASBA accepts a minor account before relying on it for an issue you intend to apply for.
Can a minor account buy shares in the secondary market?
No. A Zerodha minor account cannot buy on the secondary market, trade intraday or in futures and options, or take part in an offer for sale. It can receive shares through an IPO, a gift or a transfer, and it can sell holdings it already holds.
What happens to the IPO shares when the minor turns 18?
On attaining majority the minor account must be converted to a regular account in the now-adult holder’s name through Zerodha’s majority-conversion process. The holdings, including IPO allotments, carry over with their original cost and holding period intact.

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