CDSL Circular on - Operating Guidelines for opening of demat account in the name of Association of Persons
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Date of Issue: 27-5-2025
Issuer: CDSL
Operating Guidelines for opening of demat account in
the name of Association of Persons
Highlights of CDSL Circular dated May-27-2025
DPs are advised to refer Communique no. CDSL/OPS/DP/POLCY/2025/137 dated February 27, 2025
with issuance of SEBI Circular no. SEBI/HO/MRD/PoD1/CIR/P/2025/24 dated February 25,
2025, regarding opening of Demat Account in the name of Association of Persons.
The provisions of said SEBI circular shall be effective from June 02,
2025.
In view of the above SEBI circular in addition to the existing facility for
opening of demat account for AoPs in the name of natural persons, DPs shall
have the option to open the Demat Account in the name of Association of Person
(AoP)s also in their own name as well for holding units of mutual funds,
corporate bonds and Government Securities in dematerialized form subject to the
following conditions: .
- 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
- The PAN Card details of the AoP and the Principal Officer of the AoP shall be obtained. 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.
- In case of any dispute, the Principal Officer of the AoP shall be treated as the legal representative of the AoP. At all times, members of the AoP shall be jointly and severally liable on behalf of the AoP.
Also note the new sub-status for opening of AoP account in CDSL systems as mentioned below.
DPs are advised to make provision in their respective back office or
other systems, to ensure that such demat accounts opened by the DPs under the
AoP category shall capture the PAN Card details of the AoP and the Principal
Officer of the AoP to hold units of mutual funds, corporate bonds and
Government Securities in dematerialized form.
DP will be required to maintain the above details in their respective back
office or other systems Once the provisions are made available in CDAS systems,
DPs will be required to input the said details of the such AoP accounts from
their back office or other systems into the CDAS system.
Further, 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: -
- The AoP holds only such securities in dematerialized form as permitted by the statutes governing its constitution.
- The demat account is not be used for subscribing / holding equity shares.
DPs are advised to obtain a declaration from the AoP, as per Annexure A,
at the time of account opening along with the Account Opening Form. (Annexure
2.1 in case of individual or 2.2 in case of corporate).
DPs are advised to note the above and ensure compliance.
In case of any clarification or assistance required in the implementation of this circular, you may contact
Kaushik Jethwa - kau...@secmark.in / 9870210171
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