On Feb. 25, 2025, IND SEBI issued circular on demat accounts in the name of AOPs.
Inserts new provisions in the Dec. 2024 master circular for depositories (see #235703) to implement the proposals above; the circular is effective from Jun. 2, 2025.
Depositories are advised to take necessary measures re the above, amend relevant bylaws, notify their market participants of this circular, disseminate it on their website.
On Oct. 16, IND SEBI proposed rules re opening of demat account.
IND SEBI issued consultation paper on opening of demat account in the name of association of persons (AOPs) for holding certain securities in dematerialized form.
Proposal
Amends master circular to allow AOPs to hold certain financial assets (i.e. mutual fund units, corporate bonds, government securities) in demat accounts in own name.
Ensures AOPs only hold securities permitted by the statutes governing them.
Allows AOPs to open demat accounts for holding non-equity securities; PAN details of AOP must be provided, and demat account must not be used for holding equity shares.
Effectiveness
The consultation is open until Nov. 5, 2024.
Feb. 2025 IND SEBI Circular Issued
On Feb. 25, 2025, IND SEBI issued circular on demat accounts in the name of AOPs.
Inserts new provisions in the Dec. 2024 master circular for depositories (see #235703) to implement the proposals above; the circular is effective from Jun. 2, 2025.
Depositories are advised to take necessary measures re the above, amend relevant bylaws, notify their market participants of this circular, disseminate it on their website.
