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

Mr. Raghav Iyer wants to open a demat account with a depository participant (DP). Which of the following is the correct statement about the number of demat accounts he may hold?

An investor can open multiple demat accounts, either with the same DP or with different DPs, and in both depositories. There is no regulatory cap of one account per person, so the option stating a single-account limit is incorrect.

  1. AHe may hold only one demat account across all depositories
  2. BHe may open multiple demat accounts, with the same or different DPs, and even in both depositoriesCorrect
  3. CHe may open accounts only with one DP but in both depositories
  4. DHe may hold multiple accounts only if each is in a different name

Explanation

An investor is free to open more than one demat account, with the same DP or different DPs, in either NSDL or CDSL. There is no rule limiting an individual to a single account. The other options impose restrictions that do not exist.

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