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NISM Certifications · NISM-Series-VI: Depository Operations · Introduction to Depository

Meera Iyer holds demat accounts with a DP of NSDL. She now wishes to hold her shares through a DP of CDSL as well. Which statement is correct?

An investor can open demat accounts with DPs of both NSDL and CDSL, and even several accounts with different DPs. No closure of the existing account or regulatory approval is required, because the choice of depository and participant belongs to the investor.

  1. AShe may open accounts with DPs of both depositories, as an investor is free to do soCorrect
  2. BShe can hold accounts with only one depository at a time
  3. CShe must close her NSDL account before opening one with CDSL
  4. DShe can open the CDSL account only with SEBI's approval

Explanation

An investor may open multiple demat accounts, even with different depositories, and may choose any DP. There is no requirement to close the existing account or obtain SEBI approval. The restrictive options therefore misstate the rule.

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