'We have now made opening Zerodha accounts for kids simple and fully online,' says Nithin Kamath

Zerodha CEO Nithin Kamath on Tuesday announced that the low-cost brokerage has made opening accounts on its platform for kids has been made "simple and fully online".

While making a case for financial literacy from a young age, Kamath said on X platform, "One of the best ways to learn about money is to start early, because the things we learn when we're young tend to stick with us for the rest of our lives."

Kamath added: "One thing that has been on our to-do list for a long time is to make it as easy for parents to invest for their kids as they teach them about money. We have now made opening Zerodha accounts for kids simple and fully online. You can buy stocks, mutual funds, and bonds and then gift them to your kid, or they can discover stocks on their own and then ask you to buy them on their behalf."

"For online account opening, it's mandatory that both the minor and the guardian have their Aadhaar linked to a mobile number. Additionally, the guardian needs to have an existing Zerodha account. In cases where the minor's Aadhaar is not linked to a mobile number, or if the minor does not have an Aadhaar, the account must be opened offline," said Zerodha. 

Minors cannot buy stocks. Instead, the guardian can either transfer existing securities in their demat account or buy and transfer securities into the minor’s account. Clients can either transfer using CDSL easiest or use Zerodha’s gift feature, said the brokerage.