Markets regulator Sebi on Wednesday proposed allowing Associations of Persons (AOPs) to open demat accounts in their name to hold certain securities, excluding equity shares.
The proposal if implemented would promote ease of doing business and encourage the shift from physical to electronic holdings of securities.
In its consultation paper, Sebi has proposed amending its rules to allow AOPs to open demat accounts in their names. These accounts would enable AOPs to hold securities, excluding equity shares, directly.
The AOP would need to provide its PAN details when opening the account and confirm that only permitted securities are held, ensuring the account is not used for equity shares.
The Securities and Exchange Board of India (Sebi) has sought public comments on the proposal by November 5.
The proposal came after Sebi received suggestions to allow partnership firms, AOPs, and unregistered trusts to open demat accounts in their own name, instead of only in the names of their ..
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