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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Opening

A client wants to close his demat account. Which of the following is the correct procedure at the DP?

The client submits a signed closure request form, and the DP closes the account after ensuring no balance remains or after transferring the balance to another account of the client. Verbal requests are not valid.

  1. AThe client submits a closure request form, and the DP closes it after ensuring there is no balance or transfers the balance to another account of the clientCorrect
  2. BThe DP closes the account on a verbal request
  3. CThe DP closes the account only after one year of inactivity
  4. DThe depository closes it directly without the DP's involvement

Explanation

Closure requires a written request in the prescribed form signed by all holders, and the account must have no balances, or the balance is transferred to another account of the client. Verbal requests are not acceptable, and there is no one-year waiting period.

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