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

A DP is opening an account for a minor, Aarav, aged 10. Which is correct?

A minor's demat account is opened in the minor's own name and operated by a guardian. A minor cannot hold jointly with another person, and the minor cannot operate it independently.

  1. AThe minor can operate the account independently
  2. BThe account must be opened in the minor's name through a guardian who operates it, and joint holding with another person is not allowedCorrect
  3. CThe account can be opened jointly with the minor's mother as a second holder
  4. DThe account is opened in the guardian's name only

Explanation

A minor's account is opened in the minor's name and is operated by the natural or legal guardian. A minor cannot be a joint holder, and the account cannot be opened in the guardian's name alone. The guardian's details and proof of date of birth of the minor are taken.

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