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Can a One-Person Company (OPC) open a corporate demat account?
No, a One-Person Company (OPC) cannot open a demat account for trading or investing in securities. According to Rule 3(6) of the Companies (Incorporation) Rules, 2014, an OPC is prohibited from engaging in Non-Banking Financial Investment activities, including investing in stocks, derivatives, or other securities.
Due to this restriction, financial service providers like Arihant Capital do not allow OPCs to open trading or investment accounts. This regulation ensures that OPCs focus solely on their primary business activities and do not engage in speculative or financial investment activities, which are more suited for other types of business entities.
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