The Central Depository Services (India) Limited (CDSL) on March 24, 2026, issued the amendments to the DP Operating Instructions Chapter 2.
The following has been stated:
• It has amended Chapter 2 of its DP Operating Instructions relating to account opening, primarily impacting HUF demat accounts. The amendment allows HUF accounts to now be opened jointly with up to two individual holders, which was previously prohibited.
• It also mandates that in case of POA/DDPI, signatures of all HUF members, along with joint holders, shall be obtained. The provisions regarding the death of the Karta have been clarified to ensure continuity of the account, including replacement of the Karta and recognition of cases where a joint holder dies, wherein the HUF continues as the surviving holder.
• Additionally, DPs are required to capture details of all coparceners at the time of account opening. In cases of HUF partition, the amendments provide flexibility to open separate demat accounts for coparceners (with or without joint holders) and enable transfer of securities accordingly, while in the case of full partition, the HUF account will be closed after distribution of assets, whereas in partial partition, the account may continue.
[Notification no. - CDSL/OPS/DP/POLCY/2026/208]
