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

Mr. Sanjay Gupta is a small investor holding few securities with low value. He asks the DP for a facility with reduced annual maintenance charges. Which account type is meant for such investors, subject to eligibility on holdings and number of demat accounts?

The Basic Services Demat Account is meant for small investors with limited holdings and offers lower maintenance charges. An individual qualifies only if having a single demat account and holding securities within the prescribed value limit. The other options are intermediary or special-purpose accounts.

  1. ABasic Services Demat Account (BSDA)Correct
  2. BClearing member pool account
  3. CCorporate beneficiary owner account
  4. DMargin pledge account of the broker

Explanation

The BSDA is designed for small investors with limited holdings, with lower charges. Eligibility requires a single demat account in the investor's name (individually or as first holder) and holdings within the prescribed value limit. The other accounts are for market intermediaries or specific uses, not small investors.

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