New Delhi, Feb. 25 -- The Securities and Exchange Board of India (Sebi) on Tuesday granted permission to Associations of Persons (AoP) to open demat accounts in their own name.

Through demat accounts, AoPs can hold mutual fund units, corporate bonds, and government securities.

However, such demat accounts cannot be used for holding equity shares.

The new rule aims to make it easier for Associations of Persons to invest while ensuring regulatory compliance.

"Upon examination of the relevant legal provisions and after detailed deliberations with stakeholders, to foster and ensure ease of doing business, it has been decided to allow opening of demat account in the name of the AoP for holding securities, such as units of mutual funds, cor...