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

Mr. Iyer opens a demat account jointly with his wife and son. Which statement about the account opening form and holders is correct?

Every joint holder must sign the account opening form and provide PAN and KYC details. The requirement is not limited to the first holder, and a joint demat account is not restricted to only two persons.

  1. AOnly the first holder needs to sign the account opening form
  2. BEach joint holder must sign the account opening form and furnish PAN and KYC detailsCorrect
  3. CJoint accounts can be opened only by two persons
  4. DOnly the first holder needs a PAN

Explanation

In a joint demat account every holder must provide KYC details and PAN and sign the form. Joint accounts are not restricted to two holders. Exempting second or third holders from PAN or signature is wrong.

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