SEBI has issued a Consultation paper on Opening of demat account in the name of Association of Persons (AOPs) for holding certain securities in dematerialized form to solicit views from stakeholders and public on the proposal to clarify that Association of Persons (AOPs) can open a demat account in the name of AOP to dematerialise and hold securities (other than equity shares).
It is proposed that in case of Association of Persons (AOP), the BO account can be in the name of AOP and securities(other than equity shares) can be held in its own name. PAN card details of the respective AOP shall be obtained. The Depository Participants to seek confirmation from the AOP to the following effect while opening a demat account in the name of the AOP- The statutes governing the AOPs permit the AOP to hold securities that are being dematerialised and that only such securities that an AOP is permitted to hold shall be dematerialised / subscribed in demat form.
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