In case of death of Karta of HUF his name will be replaced by new Karta: SEBI clarifies
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- Last Updated on 29 August, 2022
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Circular No. SEBI/HO/MRD/MRD-POD-2/P/CIR/2022/114, Dated 26-08-2022
The SEBI has modified the norms w.r.t opening of the Demat account in case of HUF. As per the amended norms, in case of death of HUF’s Karta, the name of the deceased Karta in the Beneficial Owner (BO) account shall be replaced by the new Karta of the HUF who shall be the eldest coparcener in the HUF or a coparcener who is appointed as Karta by an agreement entered between all the coparceners of the HUF.
Further, the Depositories are advised to communicate to SEBI, the status of implementation of the provisions of the circular in their Monthly Development Report.
Earlier, the new Karta was appointed by HUF’s members who shall be the senior most member of the family.
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