The Securities and Exchange Board of India (SEBI) on October 16, 2024, issued a consultation paper on “Opening of demat account in the name of Association of Persons(AOPs)for holding certain securities in dematerialized form.
The following has been stated: -
•SEBI proposes allowing Associations of Persons (AOPs) to open demat accounts in their name for holding securities like mutual funds, corporate bonds, and government securities, but not equity shares.
•This move aims to simplify doing business and encourage the dematerialization of physically-held securities. AOPs must ensure compliance with governing statutes and confirm eligibility to hold specific securities. Comments on this proposal are invited until November 05, 2024.
The detailed consultation paper is given in the document below.
