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

Meera and Suresh Iyer wish to open a joint demat account. Which statement correctly describes the requirement regarding the holders at the time of account opening?

Every joint holder must separately complete KYC, provide PAN details and sign the account opening form. It is not enough for only the first holder to comply, and joint accounts are not restricted to spouses.

  1. AOnly the first holder needs to submit KYC documents, since others are secondary
  2. BEach joint holder must separately complete KYC and sign the account opening form, with PAN details for every holderCorrect
  3. CJoint accounts can be opened only between spouses
  4. DJoint holders need not be named in any order

Explanation

All holders in a joint account must be identified: PAN and KYC details are required for each holder, and each signs the account opening form. Joint accounts are not limited to spouses, and the order of holders matters as the first holder is the primary one.

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