Invest in mutual funds for your children? Here's what to do when they turn 18.

Copyright © HT Digital Streams Limit all rights reserved. According to the rules of Sebi, when a child turns 18, the parent or guardian can no longer do transactions on their behalf. Summary below Sebi’s rules, when a child turns 18, the parent or guardian can no longer make transactions on their behalf. This includes SIPs, STPs and SWPs that have already been set up. Many parents invest on behalf of the children in mutual funds. But once the child turns 18 – from minor to major – there is some paperwork needed to ensure that these investments can continue without any problems. Here’s how it works. Beat the freezing point below Sebi’s rules, when a child turns 18, the parent or guardian can no longer make transactions on their behalf. This includes systematic investment plans (SIPs), systematic transfer plans (STPs) and systematic withdrawal plans (SWPs) that have already been drawn up. These mandates are automatically canceled until the required paperwork is completed. Also read: If one stock rules your portfolio – and the risk runs that the same mandates can be used to register fresh systematic plans, but only if the same bank is maintained in the folio and the status change from minor to Major at the bank is completed. The minor in whose name the investment was made is needed to provide all information about your customers (KYC) and updated bank account details, including a canceled check from the new account. What you need for the status change before applying for a status change from minor to Major, the minor Major must first apply to apply and obtain a permanent account number (PAN). Also read: How real estate Vijay Kedia helps invest next shares, the KYC process must be completed with a KYC registration agency (KRA). The applicant must also change his or her status from minor to Major at the bank. Documents required Once done, the applicant must fill out a minor in the form of a minor application (MAM) and submit a copy of their PAN card. They must also submit a KYC recognition of the KRA or a completed KYC form, a canceled check with their name pre-printed, or a bank statement or passbook. The parent or guardian registered in the folio, or a notary or a judicial magistrate’s first class, must be attested to. The applicant must also submit nomination details or choose from this. To continue with the same sip mandate as before, a fresh mandate form must be completed and submitted. Also read: Why the funds of funds can be more expensive than you think all the business news, market news, news events and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #mutual Funds #Mutual Fund Investment Read Next Story