Skip to content

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

Mr. Sunil Desai and his wife wish to open a joint demat account. Which statement correctly describes the requirements for a joint account at the DP?

A joint demat account can have up to three holders, and KYC details must be furnished and verified for every holder, not only the first holder. It is not limited to two holders, and a minor cannot be a joint holder with an adult.

  1. AOnly the first holder's KYC is needed
  2. BA joint account can have up to three holders and KYC is needed for every holderCorrect
  3. CA joint account must have exactly two holders only
  4. DA joint account can be opened only with a minor as second holder

Explanation

A demat account can be held jointly by up to three holders, and the KYC documents and verification of each holder are required, not just the first holder. Restricting to two holders or to a minor as co-holder is incorrect. Skipping KYC of other holders breaches the process.

Did you get it right without looking?

One question tells you little. A timed set on Functions of Depository Participant - Account Opening shows your real accuracy, how long you take and where you lose marks.

Practise Functions of Depository Participant - Account OpeningFree diagnostic mock

More Functions of Depository Participant - Account Opening questions