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

Mr. Iyer approaches a Depository Participant to open a demat account. Which document does the DP give him as the formal agreement setting out the rights and duties of both the DP and the client?

The DP and client sign the account opening form together with the rights and obligations document. It is the agreement defining their mutual duties. The DIS booklet and statements are issued later and do not serve as the agreement.

  1. AAccount Opening Form with the Rights and Obligations document executed between DP and Beneficial OwnerCorrect
  2. BDelivery Instruction Slip booklet
  3. CTransaction-cum-Holding Statement
  4. DPower of Attorney issued by the depository

Explanation

At account opening the DP and the client execute an agreement (account opening form with rights and obligations document) setting out the terms. A DIS booklet is issued for transfers after opening, and a transaction-cum-holding statement reports balances. A depository does not issue a PoA for this purpose.

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