New Delhi, June 17 -- Many parents invest in mutual funds on the children's behalf. But once the child turns 18 - going from minor to major - there's some paperwork required to ensure these investments can continue without a hitch.

Here's how it works.

Under Sebi's rules, when a child turns 18, the parent or guardian can no longer make transactions on their behalf. These include systematic investment plans (SIPs), systematic transfer plans (STPs), and systematic withdrawal plans (SWPs) that were already set up. These mandates are automatically cancelled until the required paperwork is completed.

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The same mandates can be used to register fresh systematic plans, but only if...