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

Meera and Suresh Iyer want to open a joint demat account. Which statement is correct regarding such an account?

Every joint holder must complete KYC, and the account is opened with names in the order stated in the account opening form. Joint accounts are not limited to spouses, and KYC of only one holder is not sufficient.

  1. AOnly the first holder's signature is ever needed, and the second holder cannot be given any rights
  2. BEach joint holder must separately complete KYC, and the account is opened in the names of the holders in the order stated in the formCorrect
  3. CJoint accounts can be opened only by spouses
  4. DOnly the second holder is required to complete KYC

Explanation

For a joint account, KYC is required for every holder, and names are recorded in the order given in the account opening form. Joint accounts are not restricted to spouses. The claim that only one holder's details matter is wrong because every holder must be identified.

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