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

A resident individual wants to open a demat account with a Depository Participant (DP). Which document must the DP obtain to verify the client's Permanent Account Number (PAN)?

The DP must obtain a copy of the PAN card and verify it against the original or the Income Tax database. PAN is mandatory for every holder, and declarations, utility bills or bank statements cannot replace this verification.

  1. AA photocopy of the PAN card, verified with the original or through the Income Tax databaseCorrect
  2. BA self-declaration by the client that a PAN exists
  3. CA utility bill showing the client's address
  4. DA bank statement for the last six months

Explanation

PAN is mandatory for all demat account holders, including joint holders, and the DP must verify it against the original or the Income Tax database. A self-declaration or an address proof does not establish PAN. A bank statement is not a PAN verification document.

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