In an interview to CNBC-TV18, Gaurav Mashruwala, Certified Financial Planner spoke about things to do if the 'Karta' of Hindu Undivided Family passes away.
Below is the verbatim transcript of Mashruwala's interview with CNBC-TV18.
Caller Q: What should I do with demat a/c where 'Karta' of Hindu Undivided Family (HUF) has expired? I have been told that the 'Karta' can be changed and bank is ready to accept for the savings account but National Securities Depository Limited (NSDL) is not accepting?
A: These are operational issues and when it comes to NSDL, we have had these issues in past whereby the depository is that will reluctant. The way couple of our clients had approached and you may want to try this, once changed with the bank you should apply directly to the depository participants with a request to NSDL.
If NSDL asks for a declaration of new 'Karta' with the letter of consent from all the coparcener and if there is any undertaking that needs to be given then gives those undertakings.
It is a slightly tedious process because when the draft was being made, there was no provision how 'Karta' could be changed but there has been instances where with little follow-up the 'Karta' change has happened. Therefore, it's an operational issue but it can be resolved with follow-up and these kinds of documentations, declarations, no objection certificates (NOCs) from coparceners etc.