SEBI paper proposs to allow Associations of Persons to hold units of MFs, corporate bonds and Gsecs in their own demat account

Securities and Exchange Board of India (SEBI) has come up with a discussion paper proposing to allow Associations of Persons (AoPs) to hold units of mutual funds, corporate bonds and government securities in their own demat accounts. The paper said that this was being suggested for ease-of-doing business and to encourage dematerialisation of securities held in physical form. It also said that the AoPs demat account will not be used for subscribing or holding equity shares. SEBI says that AoP would also be held legally responsible for ensuring that they only subscribe to the financial instrument/ securities that are permitted by statutes governing the AOP.

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