NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Opening
Ms. Kapoor wants to open a joint demat account with her husband. Which statement about the holder structure is correct?
A demat account may have up to three joint holders, with the first-named person acting as the first holder. It is not limited to a single name, nor to HUFs, and no minimum of four holders exists.
- AOnly the first holder's name may appear on the account
- BUp to three joint holders can be in one account, and the first holder is the primary holderCorrect
- CJoint accounts require a minimum of four holders
- DJoint holding is permitted only for HUFs
Explanation
A demat account can be held singly or jointly, with up to three holders, and the first-named is the first holder. The name order should match the pattern in the securities being dematerialised. Joint holding is not restricted to HUFs.
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