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

Meera and her husband Arun open a joint demat account in the order Meera, Arun. Which statement about the holders' status is correct?

Meera is the first holder and Arun the second holder, because the sequence of names in the account opening form determines holder status. The DP cannot rearrange the order, and factors like gender or alphabetical order are irrelevant.

  1. AMeera is the first holder and Arun is the second holder, and the order of names must match the order in the account opening formCorrect
  2. BBoth holders must always sign the account opening form in alphabetical order
  3. CArun automatically becomes the first holder because he is male
  4. DThe DP decides the order of holders at its discretion after account opening

Explanation

In a joint account the holders are designated as first, second and third in the order given in the account opening form. The DP does not reorder them. Gender or alphabetical order has no role.

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