The Central Depository Services (India) Limited (CDSL) on March 20, 2026, issued a communiqué providing clarifications on the legal position regarding the opening of demat accounts for Hindu Undivided Families (HUFs), particularly in cases where there is only one coparcener along with a member.
It has been clarified that HUF demat accounts may be opened even with a single coparcener acting as the Karta, provided there is at least one additional HUF member such as a wife, mother, or widow. This addresses operational ambiguities raised by Depository Participants (DPs) in such scenarios.
Further, such accounts must be opened in the name of the HUF as per PAN records, with proper identification of the Karta and submission of supporting documents including the list of coparceners and members along with applicable KYC requirements, in line with the regulatory framework.
[Communiqué No. CDSL/OPS/DP/POLCY/2026/196]
