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

A DP is opening a joint demat account for Mr. Nair, Mrs. Nair and their son. Which of the following is correct regarding the account?

For a joint demat account, PAN and KYC details must be obtained and verified for every holder, and each holder signs the account opening form. A joint account can have up to three holders, so verifying only the first holder is not enough.

  1. AOnly the first holder's KYC and PAN need to be verified
  2. BPAN and KYC details of every joint holder must be obtained and verifiedCorrect
  3. CJoint accounts can be opened only with two holders, never three
  4. DJoint holders need not sign the account opening form

Explanation

Each joint holder must furnish PAN and KYC documents, and each signs the form. A demat account can have up to three joint holders, so a three-holder account is allowed and verification is required for all.

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