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

Meena Iyer and her husband Suresh hold a joint demat account with Meena as first holder. The account opening form has no operating instruction mentioned. Which statement reflects the standard position on who must sign for delivery instructions?

By default, all joint holders must sign the delivery instruction slip in a joint demat account, unless the holders have given different operating instructions in the account opening form that the DP can follow. So with no instruction recorded, both Meena and Suresh must sign.

  1. AOnly the first holder may sign, unless the account is operated 'either or survivor'
  2. BAll holders must sign, unless operating instructions are given in the form allowing otherwiseCorrect
  3. COnly the second holder may sign
  4. DAny holder can sign, irrespective of instructions given

Explanation

In a joint account, the default is that all holders sign delivery instructions. Where the holders have specified different operating instructions at opening, the DP follows them. The first-holder-only option confuses a permitted mandate with the default.

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