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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Transmission and Nomination

A minor's demat account is operated by her guardian. On what event does the minor's account normally require conversion into an ordinary account in the name of the individual?

The account is converted when the minor attains majority. The new adult submits fresh KYC documents and account opening details, and the DP changes the status of the account. Age ten, job changes of the guardian or receipt of dividend do not trigger conversion.

  1. AWhen the minor attains majority, after submission of fresh documents and KYC by the new adultCorrect
  2. BWhen the guardian changes jobs
  3. CWhen the minor completes ten years of age
  4. DWhen the minor first receives a dividend

Explanation

A minor's account is operated by the guardian until the minor becomes a major. On attaining majority the holder must complete fresh KYC and account opening formalities, and the account status is changed. The other events have no effect on the account status.

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