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

Meena and her husband Suresh wish to open a joint demat account. Which statement about the account opening is correct?

In a joint demat account, KYC documents of all holders must be furnished and the account is opened with names in the sequence given by the applicants. Joint accounts are allowed, and requiring only the first holder's KYC is incorrect.

  1. AOnly the first holder's KYC is required
  2. BOnly the first holder can be an Indian resident, and the second must be an NRI
  3. CKYC documents of all joint holders are required, and the account is opened in the names of the holders in the order givenCorrect
  4. DJoint demat accounts are not permitted for spouses

Explanation

For a joint account, KYC and details of every holder are needed, and the order of names is recorded as in the application. Each holder must be identified. Joint accounts are permitted and the residency restriction stated is wrong.

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