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NISM Certifications · NISM-Series-VI: Depository Operations · Investor Services (NISM VI)

Meena complains to her DP that her request to close her demat account was not processed. She has no securities or pending charges in the account. Which statement best reflects the correct procedure?

A BO may close a demat account by submitting a closure request in the prescribed form to the DP. The DP processes it once securities balances are nil and dues are cleared. No waiting period, family transfer or direct depository action is required.

  1. AThe account can be closed only by the depository directly, not through the DP
  2. BThe account can be closed only after one year of inactivity
  3. CThe account can be closed only if she transfers the balance to a family member
  4. DThe BO may close the account by submitting a closure request in the prescribed form, and the DP must process it once any balance is cleared and dues are paidCorrect

Explanation

A BO can close an account by submitting a closure request in the prescribed form to the DP. The DP processes it after ensuring there are no balances or pending dues, and any remaining securities must first be transferred or dematerialised. The other options impose conditions that do not exist.

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