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Friday, June 3, 2011

Procedure for change in status from minor to major (in mutual fund investment)



What is the procedure to change the status when the Minor becomes Major?
 
When the units are held on behalf of the minor, the ownership of the units rests with the minor. A guardian operates the account until the minor attains the age of majority. When a minor turns major, mutual funds will seek relevant documents and follow the guidelines as enumerated below. 

Prior to minor attaining majority, Mutual Funds will send advance notice to the registered correspondence address advising the guardian and minor to submit an application form along with the prescribed documents to change the status of the account to “major”. 

The notice shall clearly state that all existing standing instructions and transactions including SIP,STP,SWP which have been registered earlier for a period beyond the minor's date of attaining majority shall be suspended. 


The account shall be frozen for operation by the guardian on the day the minor attains the age of majority and no transactions shall be permitted till the documents for changing the status as required are received. 

Also refer


Procedure for Transmission - Change in Guardian due to demise of Existing Guardian


A letter from the guardian requesting for the change in the minority status of the Unitholder.(format)













Date: DD/MM/YYYY


To
……………………………………………….
………………………………………………..
………………………………………………..

Dear Sirs,


Sub: Change of minority status of Unit holder
Ref: ________units of __________Scheme, account no._________


I / We refer to ________number of units of ____________Scheme, account no. ________________ (hereinafter referred to as “the Units”) held by _________________
as Guardian of _________________, a minor aged _______ years (hereinafter referred to
as “the Unit holder”).

As the Unit holder has completed the age of 18 years on ____________, I / we therefore
request you to transfer the Units in the name of the Unit holder independently and ensure
that all future correspondence, dividends etc. are in the name of the Unit holder.


Thank you,
Yours sincerely,



(Guardian)                                       (Signature of Minor)


Encl :
Attested Pan
Bank Details of Minor
KYC is Mandatory (For Investment of any Value)








 List of standard documents to change the account status from minor to major:
 
  • A Service Request form / letter duly filled and containing details of the Fund, name of the major (investor) and folio number)


  • New Bank mandate Registration form if there is a change in the bank account of the investor; 
  •   Signature attestation of the investor (major) by the Bank Manager;
  • KYC acknowledgement of the investor – i.e. the minor who has turned major;





*All certified copies are to be:

  • Attested by a gazetted officer; or a practising Chartered Accountant or Advocate;
  • Letter should also be duly signed by minor who has turned major along with his Bank details. The signatures need to be attested as mentioned below


  • Attested by the manager of a bank where the Unitholder maintains an account, specifying the manager's bank identification number; or
  • Notarised by a Notary Public. (Note: A power of attorney is always to be notarised by a notary public.)


What would happen to SIPs registered for a Minor's folio?
AMCs will register fresh standing instructions like SIP,SWP,STP in a minor's folio only till the date of the minor attaining majority, though the instructions may be for a period beyond that date.

 Bank Mandate Form


 2. Form Bank Mandate with Banker Attestation (cams)


3. Form

Minor attains Major form


(Contributed by Investor Education Team of CAMS. The views expressed herein are general practices in the mutual fund industry and may vary on a case-to-case basis.)

8 comments:

  1. Thank you for the proper information

    ReplyDelete
  2. Happy to help you, i am glad that my blog article is helpful to you :)

    ReplyDelete
  3. What documents would I need in order to change my status from minor to major for the bank account?

    ReplyDelete
    Replies
    1. Hi,

      Following documents needs to be submitted:

      Identity Proof
      Address proof
      Photograph
      Proof of becoming major like Birth certificate, Passport etc

      Delete
    2. On attaining majority, the accounts will be frozen and the freeze will be removed only after submission of documents.

      Delete
    3. Conversion of the Account to a Normal Savings Account:

      A communication letter from Bank is sent to the Customer intimating him about the facility of conversion of his Account to a normal savings account.

      Upon the Customer attaining majority, Bank shall have the right to freeze the Account. Such freeze shall be released only upon the fulfillment of all account opening formalities by the Customer (minor) as applicable to normal savings account.


      So it means to convert account status from minor to major you need to submit above mentioned documents and KYC form which is also compulsory for opening bank account or for changing your tax status that is from minor to major.

      Delete
    4. Required documents:

      1. Latest photographs of applicant(s)

      2. Identify proof (passport, driving license, voter identity card, employee identify card, PAN card)

      4. Proof of communication address (passport, latest electricity bill, telephone bill,)

      5. Proof of age of the minor attending majority (passport, birth certificate, school leaving certificate)

      Delete

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