Home >Mutual Funds >News >Mutual funds freeze minor accounts on attaining majority. Here are the rules
Mutual funds allow the guardian to operate the minor’s account only until the minor attains the age of majority.
Mutual funds allow the guardian to operate the minor’s account only until the minor attains the age of majority.

Mutual funds freeze minor accounts on attaining majority. Here are the rules

Mutual funds suspend all transactions including SIP, SWP, STP till the status is changed from minor to major

Mutual funds allow the guardian to operate the minor’s account only until the minor attains the age of majority. Mutual funds freeze the minor’s account for operation by the guardian on the day the minor attains the age of majority. Mutual funds suspend all transactions including SIP, SWP, STP till the status is changed from minor to major.

When a minor turns a major, she needs to submit an application for change in status from Minor to Major in a prescribed form called MAM form along with the required dcuments.

Before submitting the MAM application form for change in status from Minor to Major, the mutual fund unitholder should –

i. Apply for PAN & obtain a PAN card

ii. Complete the KYC process; and

iii. Change her status in her existing bank account from Minor to Major or, open a new bank account immediately upon becoming a major and procure a new cheque book with her name pre-printed thereon.

After fulfilling the above steps, the investor should submit the prescribed MAM form to the AMC/ Registrar along with the requisite supporting documents as explained below.

1) The prescribed MAM form duly filled in all respects. Note: Signature of the applicant (minor who has turned major) in the MAM form shall be duly attested in the space provided therein by the parent/guardian whose signature is registered in the records of the mutual fund against the folio of the minor unitholder or by a Notary or a Judicial Magistrate First Class.

Alternatively, the applicant’s signature may be attested by the unitholder’s bankers.

2) Copy of PAN Card of the applicant

3) KYC Acknowledgment or a duly competed KYC form

4) A cancelled cheque leaf with the applicant’s name pre-printed or the applicant’s latest Bank Statement/Passbook.

5) Signature attestation by the banker, if the signature of the applicant is not attested by the guardian or a Notary or a JMFC in the MAM form

6) Nomination form

7) A fresh SIP, STP, SWP mandate in the prescribed form if the applicant wants to continue the SIP, STP, SWP in the folio

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