Regulatory Alerts2025-02-25
SEBI Circular on Opening Demat Accounts in the Name of Association of Persons
The Securities and Exchange Board of India (SEBI) has authorized Associations of Persons (AoP) to open demat accounts in their own name to hold mutual fund units, corporate bonds, and government securities. This directive amends the Master Circular for Depositories by introducing specific conditions, including the requirement to obtain PAN details of the AoP and its Principal Officer, while explicitly prohibiting the use of such accounts for equity shares. Depositories are instructed to implement necessary system changes and amend bye-laws to ensure compliance with these provisions, which become effective from June 2, 2025.
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