Corrigendum to Master Circular for Depositories dated February 05, 2021 on Opening of demat account in case of HUF
Summary
This circular partially modifies the Master Circular for Depositories dated February 05, 2021, specifically regarding the opening of demat accounts for Hindu Undivided Families (HUF). It replaces Subsection 1.2(a) of Section 1.4 to clarify that the new Karta appointed by the senior-most family member replaces the deceased Karta in the Beneficial Owner account. Additionally, it updates footnote 31 of Section 1.4 with specific reference letters and mandates depositories to implement necessary legal and system changes.
Text
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
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
make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision, as may be applicable/necessary
to carry out system changes, if any, to implement the above
disseminate the provisions of this circular on their website
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
Source: SecMarx — Corrigendum to Master Circular for Depositories dated February 05, 2021 on Opening of demat account in case of HUF. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.