Multiple choice general knowledge

A Partnership firm cannot open Depository accounts because :

  1. Partnership firms do not have a Memorandum of association.

  2. SEBI regulations does not allow Partnership firms to trade in securities.

  3. The Companies act does not allow Partnership firms/Proprietorships to hold shares.

  4. It may not be possible to enter the names of all the partners in DPM.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Partnership firms cannot open depository accounts because the Companies Act restricts share ownership to companies. The issue is not about SEBI regulations, memorandum of association, or technical limitations in entering names in DPM. It's a legal restriction on who can hold shares.

Keep practicing — related questions