SEBI now permits the opening of demat accounts in the name of an Association of Persons (AoP) for holding mutual fund units, corporate bonds, and government securities. Key conditions include:
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
PAN details of AoP and its Principal Officer (e.g., secretary, treasurer, or manager) must be provided.
Depository Participants must verify that the demat account holds only permitted securities and does not include equity shares.
The Principal Officer will act as the legal representative in case of disputes.
Members of the AoP will be jointly and severally liable at all times.
The provisions of this circular shall be effective from June 02, 2025
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