Corrigendum to Master Circular for Depositories dated February 05, 2021 on Opening of demat account in case of HUF
- Please refer to SEBI Master Circular for Depositories No. SEBI/HO/MRD2/DDAP/CIR/P/2021/18 dated February 05, 2021.
- 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 appointed by the member of the HUF who in such a case shall be senior most member of the family” - Further, footnote 31 of Section 1.4 of the Master Circular on “Opening of demat account in case of HUF” shall be replaced with:
“Reference: SEBI letter No.SEBI/HO/MRD/DP/OW/25739/1 and 25740/1 dated September 14, 2016 and SEBI letter No. MRD/DSA1/OW/4946/2018 and 4947/2018 dated February 14, 2018” - 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.
- 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. - This circular is issued in exercise of powers conferred under Section 11 (1) of the Securities and Exchange Board of India Act, 1992 read with Section 19 of the Depositories Act,1996 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market.
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