hello,
As per the sebi circular (2014) the huf demat account can be opened only in the name of karta and not the huf entity. however the trading account needs to be opened in the name of the HUF entity. Could you plz clarify this?
You can map a Karta’s demat account to that of the HUF. I think its a Depository rule that the demat account be opened in the name of a legal ‘person’ only. Since Partnership firm, HUF’s aren’t legal persons, its mandatory to open a Demat account in the name of the partner/karta.
Since a Company is an artificial legal person, opening a demat account in the name of the company is allowed.
I suggest you read this in your spare time
http://tradingqna.com/2760/what-what-advantages-opening-trading-demat-account-which-huf
@VenuMadhav @siva I have a trading & demat account with zerodha and its my individual a/c. Now, can I map this a/c to my HUF a/c ? if so, what’s the process ?
Sorry, I didn’t understand. You want to map your trading and demat account to which HUF account?
Let me rephrase it. I have a personal demat a/c in Zerodha. I am planning to open a HUF demat a/c. So a new Zerodha a/c will be opened for HUF ? or my personal Zerodha a/c will be marked as HUF a/c as I am the karta
I’m attaching a copy of CDSL’s operating instructions as per March 2020, which allow a demat account to be opened in the name of the HUF. As such, you can open a trading and demat account in the name of the HUF.
