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

After opening a demat account for client Neha Sharma, the DP must perform which of the following?

The DP must give the client a copy of the executed agreement along with the rights and obligations document and the schedule of charges. Concealing charges or sharing confidential access details with others would breach DP obligations.

  1. AHand over a copy of the executed agreement with the rights and obligations document and the schedule of charges to the clientCorrect
  2. BKeep the tariff schedule confidential until the first transaction
  3. CShare the client's account password with the broker
  4. DSend the agreement only to the depository

Explanation

The DP must give the client a copy of the signed agreement, the rights and obligations document and the charges schedule. Hiding tariffs, sharing credentials with a broker, or sending the agreement only to the depository breach DP obligations.

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