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

Mr. Arjun Mehta wants to open a demat account and submits his PAN card photocopy. The DP's officer compares it with the original and records the verification. What is the purpose of this step?

The DP checks the photocopy against the original to confirm authenticity as part of the KYC process. It does not remove the PAN requirement, does not allow trading without a broker, and does not change the account type to a basic services account.

  1. ATo confirm the copy is authentic by in-person or original verification as part of KYCCorrect
  2. BTo allow the DP to waive the requirement of a PAN altogether
  3. CTo enable the client to trade without a broker
  4. DTo convert the account into a basic services demat account automatically

Explanation

DPs must verify copies of documents against originals as part of KYC. This does not waive PAN, which is mandatory for most accounts, and it has no link to trading without a broker or to the BSDA category.

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