Demat a/c opening of partnership firm
RAVI SONI 
(Querist) 20 December 2014
This query is : Resolved
There has been a Partnership Firm with 2 partners Mr.A & Mr.B but the Depository Participant are not opening a Demat A/C in the name of Partnership Firm they are opening the A/C in the name of Joint Partners.
I want to know in which Act this is mentioned.
ajay sethi
(Expert) 20 December 2014
as per the clarification
issued by the Department of Company Affairs vide its Circular No. 5/75 (8/18/75-CL-V)
dated March 31, 1975, Partnership Firm is not capable of being a member within the
meaning of Section 41 of The Companies Act, 1956.
Procedure for opening an account in the name(s) of Partners for holding securities that
belong to the Partnership firm
(i) The account should be opened only in the name of Partner(s) and the securities that
belong to the Partnership Firm can be held in this account.
(ii) The Participant should obtain Proof of Identity and Proof of Address of the Partner(s) as
per the procedure mentioned earlier (refer pages no. 2 & 3- Documents for Verification)
and a copy of the Partnership Deed to verify the names of Partner(s).
(iii) In addition, Participants should obtain a photocopy of the PAN card of the Partnership firm
and verify the same with the original PAN card and follow the procedure for verification of
PAN mentioned earlier (reference to Details of Income Tax Permanent Account Number
(PAN)- pages 14 to 18).
(iv) Participants are advised to obtain an undertaking in the enclosed format from the Partner(s)
to the effect that the Partner(s) would comply with the provisions of the Companies Act,
1956 and other applicable statutes in respect of securities of the Partnership firm held in
the account opened in the name of the Partner(s).
ANNEXURE for opening an account in the name(s) of Partners
ajay sethi
(Expert) 20 December 2014
Handbook for NSDL
Depository Operations Module
National Securities Depository Limited contains detailed guidelines in this regard
