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

Mrs. Sunita Rao opens a joint demat account with her husband. The account operating instruction is 'Anyone or Survivor'. Which statement is correct?

Under an 'Anyone or Survivor' mandate, either holder can give instructions alone, and the surviving holder continues to operate the account if the other dies. It does not require joint signatures on each instruction.

  1. AEither holder may give instructions individually, and on death of one the survivor continues operatingCorrect
  2. BBoth holders must sign every delivery instruction
  3. COnly the first holder may operate the account at any time
  4. DThe account is frozen upon the death of either holder

Explanation

'Anyone or Survivor' lets any one holder operate the account alone, and the survivor continues after the death of another holder. Requiring both signatures corresponds to a 'jointly' mandate. Freezing does not occur automatically in this mode.

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