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

A DP receives an account opening request for a minor, Aarav, aged 10. Which of the following is correct?

A demat account for a minor is opened in the minor's name and is operated by the natural or legal guardian, whose details are recorded. There is no minimum age condition and the minor cannot operate the account personally.

  1. AThe account can be opened in the name of the minor, operated by a natural guardian or court-appointed guardian, with the guardian's detailsCorrect
  2. BThe account can be opened only after Aarav turns 14
  3. CThe account must be opened jointly with another minor
  4. DThe minor can operate the account himself using a power of attorney

Explanation

A minor's demat account is opened in the minor's name and operated by the guardian. There is no minimum age of 14, and a minor cannot appoint a power of attorney or operate the account directly. Joint holding with another minor is not allowed.

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