• Partnership firm takeover

Hello,
We are taking over a partnership firm and on due diligence found that it's Demat account is suspended. We Asked the current owners but they have no idea or does not wish to disclose. Is there any way we could find out what is the reason of suspension and is there any serious inquiry on the firm. 

What should be our course of action.
Asked 2 years ago in Business Law

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8 Answers

There can be many reasons for suspension of Dmat, even for not furnishing KYC Dmat is suspended, there can also be some fraud. Better visit NSDL portal and ascertain the reason before taking over.

Ravi Shinde
Advocate, Hyderabad
4267 Answers
42 Consultations

NSDL will suspend such demat accounts if the PAN is not verified or if the PAN is validated but not seeded with Aadhaar.

 

2) For demat accounts wherein any one or more of KYC attributes is not updated i.e. Mobile No., Email ID and Income Range (Out of these 3 attributes, either any one OR any two OR all three attributes are not updated), NSDL will suspend such demat accounts 

Ajay Sethi
Advocate, Mumbai
97230 Answers
7851 Consultations

You can find out the same from the demat facility provider with whom the said demat account is maintained. You can also try with registrar of firms

Prashant Nayak
Advocate, Mumbai
32660 Answers
207 Consultations

You should file an application with the nsdl/csdl asking for information.

Rahul Mishra
Advocate, Lucknow
14107 Answers
65 Consultations

he partnership concern should be taken over as a going concern with all assets and liabilities on date being assumed by the company taking over.

If the demat account is suspended, you may write to the existing partners of the company and seek clarification.

If you don't get any proper response, you may better issue a legal and seek explanation and secure this as a documentary evidence to use them in future in case of any dispute in this regard.

 

 

T Kalaiselvan
Advocate, Vellore
87429 Answers
2348 Consultations

Do not venture to take over unless they disclose all relevant facts about suspension of the demat account. 

Swaminathan Neelakantan
Advocate, Coimbatore
2936 Answers
20 Consultations

Dear Client,

A Demat Account can be suspendedfor a specific period whenever needed. This feature comes in handy when users avoid unexpected debits or credits into their Demat Account. Users can also opt to freeze their Demat Account for a specific number of securities in the account.

Thank You.

Anik Miu
Advocate, Bangalore
10285 Answers
121 Consultations

Yes, you can share the documents first so that I can check the depth of the case.

Khyati Malik
Advocate, Bhopal
91 Answers
2 Consultations

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