BENEFICIAL OWNER (BO) IN PLACE OF DECEASED KARTA OF HUF

The Securities and Exchange of India (SEBI) has issued a Corrigendum to Master Circular for Depositories dated February 05, 2021 on “Opening of demat account in case of HUF on 26^th August, 2022”

The corrigendum provides that the following can be Karta in case of a death of a Karta. In addition to the below, it also does not except married daughters from being appointed as Beneficial Owner (BO).

The eldest coparcener in the HUF (Hindu Undivided Family) OR
A coparcener who is appointed as Karta by an agreement reached amongst all the coparceners of the HUF.

This is contradictory to the master circular issued by SEBI on 5^th February, 2021 which provided that in the event of death of Karta of HUF, the Beneficial Owner (BO) in place of such deceased Karta shall be new Karta appointed by HUF who shall be senior most member of the family. It also provided that married daughters cannot be beneficial owners which is been rectified by the corrigendum.

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BENEFICIAL OWNER (BO) IN PLACE OF DECEASED KARTA OF HUF

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