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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

NSDL -Reiteration of SEBI circular regarding Opening of Demat Account in the name of Association of Persons(AoP)

27-Feb-2025 | NSDL/POLICY/2025/0027

NSDL has reiterated SEBI circular regarding Opening of Demat Account in the name of Association of Persons(AoP) effective from 2nd June, 2025.

By virtue of the circular, it is notified that a paragraph 1.2.6 has been inserted in Section 1 of Master Circular for Depositories which specifies that AoP may open a demat account in its own name to hold mutual fund units, corporate bonds, and government securities, apart from opening of Demat acount in the name of natural persons, subject to the following conditions-
(a) Make sure that the subscription is only made to those financial instruments/ securities that are permitted by statutes.
(b) PAN card details of the Principal officer and AoP should be obtained.
(c) Principal officer will be the legal representative of AoP in case of any disputes.
(d) Depository Participant shall seek confirmation with respect to the following from AoP while opening a demat account-
(i) AoP holds only such securities in demat form as permitted by the statutes.
(ii) Demat account is not used for any other purpose except subscribing/holding equity shares.

Please refer to the attached document for further details.

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