Securities and Exchange Board of India
Circular No. SEBI/HO/MRD/MRD-POD-2/P/CIR/2022/114 | Dated: August 26, 2022
Sub: Corrigendum to Master Circular for Depositories dated February 05, 2021 on Opening of demat account in case of HUF
1. Please refer to SEBI Master Circular for Depositories No. SEBI/HO/MRD2/DDAP/CIR/P/2021/18 dated February 05, 2021 and Corrigendum to Master Circular for Depositories dated February 05, 2021 on Opening of demat account in case of HUF dated February 17, 2021.
2. In partial modification, Subsection 1.2 (a) of Section 1.4 of the Master Circular for Depositories dated February 05, 2021 shall be replaced with the following:
“In the event of death of Karta of HUF, the name of the deceased Karta in the Beneficial Owner (BO) account shall be replaced by the new Karta of the HUF who in such a case shall be eldest coparcener in the HUF or a coparcener who is appointed as Karta by an agreement reached amongst all the coparceners of the HUF”
Who can be beneficial owner of bank Account in case of death of Karta of HUF
3. It may be noted that the other provisions of the Master Circular for Depositories SEBI/HO/MRD2/DDAP/CIR/P/2021/18 dated February 05, 2021 shall remain unchanged.
4. The Depositories are advised to:
i. make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision, as may be applicable/necessary;
ii. to carry out system changes, if any, to implement the above;
iii. disseminate the provisions of this circular on their website;
iv. communicate to SEBI, the status of implementation of the provisions of this circular in their Monthly Development Report.
5. This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992, to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
6. The circular is available on SEBI website at www.sebi.gov.in at “Legal > Master Circulars”.
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