SEBI permits opening of Demat Account in the name of Association of Persons.
SEBI in view of the representations to permit opening of demat accounts directly in the name of Association of Persons (AoP) has decided to allow opening of demat account in the name of the AoP for holding securities, such as units of mutual funds, corporate bonds and Government Securities in demat account.
Accordingly, Master Circular for Depositories dated December 03, 2024 has been modified by inserting paragraph 1.2.6.A. titled “Opening of Demat Account in the name of Association of Persons (AoP) as under:
1.2.6.A Apart from opening of demat account by AoP in the name of natural persons as provided in paragraph 1.2.6, an AoP may also open a Demat account in its own name for holding units of mutual funds, corporate bonds and Government Securities in dematerialized form, subject to the following conditions:
1.2.6.A.1 AoP shall be responsible for ensuring that it only subscribes to the financial instrument/ securities that are permitted by statutes governing the constitution of AoP.
1.2.6.A.2 The PAN Card details of the AoP and the Principal Officer of the AoP shall be obtained. Explanation: For this purpose, “Principal Officer” with reference to AoP means the secretary, treasurer, manager or agent or any person connected with the management or administration of the AoP.
1.2.6.A.3 While opening a demat account in the name of the AoP, the Depository Participants shall seek confirmation from the AoP with respect to the following:
1.2.6.A.3.1 The AoP holds only such securities in dematerialized form as permitted by the statutes governing its constitution.
1.2.6.A.3.2 The demat account is not be used for subscribing/holding equity shares.
1.2.6.A.4 In case of any dispute, the Principal Officer of the AoP shall be treated as the legal representative of the AoP.
1.2.6.A.5 At all times, members of the AoP shall be jointly and severally liable on behalf of the AoP.
Download SEBI Circular Click Here >>
Even if, the assessee is engaged in the bogus purchases, the entire purchases cannot be disallowed - ITAT In a…
Order to stock broker through WhatsApp may be considered as legally verifiable record - SEBI SEBI in an informal guidance…
ICAI Guidance Note on Audit of Banks 2026 Edition ICAI has issued 2025 edition of the Guidance Note on Audit…
NHIDCL is hiring CA/CMA and others as Young Professionals – Last date to apply is 14.04.2026 The National Highways and…
Income Tax Rules 2026 notified by CBDT. CBDT has issued Notification No. 22/2026 dated 20.03.2026 to notify the Income-tax Rules,…
Absence of an explicit irrevocability clause in trust deed no ground for rejecting application for registration or renewal under section…