The Central Depository Services Limited (CDSL) on December 12, 2025, issued the Hindu Undivided Family (HUF) with Jointly with Individual(s).
The following has been stated namely: -
• SEBI has permitted the opening of HUF demat accounts jointly with up to two individual joint holders, and the related functionality has been enabled in the CDSL system.
• Such HUF demat accounts cannot have nominations, as an HUF exists in perpetuity and nomination facility is not permitted.
• The demat account may have a maximum of two individual joint holders, the HUF must be the first holder (PAN fourth letter “H”), and joint holders must be individuals (PAN fourth letter “P”).
• Upon demise of the Karta, the HUF demat account will continue with a newly appointed Karta; in case of demise of an individual joint holder, the HUF will continue as the surviving holder.
• In the event of partition of the HUF, new demat accounts may be opened for partitioned coparceners and securities transferred accordingly; upon full partition, the existing HUF demat account shall be closed.
[Notification No. CDSL/OPS/DP/POLCY/2025/818]
