SEBI/HO/MRD/PoD1/CIR/P/2025/24 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/MRD/PoD1/CIR/P/2025/24 February 25 , 2025 To, The Depositories Madam/Sir, Subject: Opening of Demat Account in the name of Association of Persons SEBI had received representations to permit opening of demat accounts directly in the name of Association of Persons (AoP). Upon examination of the relevant legal provisions and after detailed deliberations with stakeholders, to foster and ensure ease of doing business, it has been decided to allow opening of demat account in the name of the AoP for holding securities, such as units of mutual funds, corporate bonds and Government Securities in demat account. In view of the above, paragraph 1.2.6.A. titled "Opening of Demat Account in the name of Association of Persons (AoP)" shall be inserted after paragraph 1.2.6 of Section 1 of the Master Circular for Depositories dated December 03, 2024: " 1.2.6.A Apart from opening of demat account by AoP in the name of natural persons as provided in paragraph 1.2.6, an AoP may also open a Demat account in its own name for holding units of mutual funds, corporate bonds and Government Securities in dematerialized form, subject to the following conditions: 1.2.6.A.1 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. 1.2.6.A.2 The PAN Card details of the AoP and the Principal Officer of the AoP shall be obtained. Explanation: 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. 1.2.6.A.3 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