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

Mrs. Latha Iyer has a basic services demat account (BSDA) at a DP. Which condition is a feature of a BSDA?

A basic services demat account is meant for small investors with limited holding value, and an individual can have only one such account across depositories. It offers lower charges. It is not for corporates and is not limited to mutual fund units.

  1. AAn individual may hold only one BSDA across depositories and it is for small investors with limited holding valueCorrect
  2. BAny number of BSDAs may be held, one per DP
  3. CBSDA is available only to corporates
  4. DBSDA allows holding only mutual fund units

Explanation

BSDA is meant for small investors, who may hold only one such account, with holding value limits and lower or no annual maintenance charges. It is not available only to corporates, and it is not restricted to mutual fund units. Multiple BSDAs per person are not permitted.

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