NSDL circular on Opening of Demat Account in case of HUF
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Highlights of the Circular :
Participants are advised to note that, NSDL has received multiple representations from Participants seeking clarifications regarding opening of demat accounts for Hindu Undivided Families (HUFs), particularly in scenarios where the HUF comprises a single co-parcener along with one HUF member.
In this context, it is clarified that the HUF demat accounts can be opened with one co-parcener acting as the Karta and at least one HUF member (such as a wife, mother or widow).
It is further clarified that such demat accounts shall continue to be opened in the name of the HUF entity s appearing on the PAN card, with the Karta duly identified, supported by details of co-parcener and a member subject to satisfactory completion of all KYC documentations as prescribed for Non- Individual Accounts.
Participants are requested to take note of the above.