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

Ms. Kavita, a resident individual, wants a demat account in which she and her husband hold securities jointly. Which statement about a joint account is correct?

In a joint demat account all holders must complete KYC and sign the account opening form, and the sequence of names is recorded as given there. It is not enough for only the first holder to comply, and joint accounts are not limited to non-residents.

  1. AAll holders must sign the account opening form, and the order of names is maintained as in the formCorrect
  2. BOnly the first holder signs; the other holders need not provide KYC
  3. CA joint account can be opened only by non-resident persons
  4. DA joint account can have only a minor as the second holder

Explanation

In a joint account, KYC is required for every holder and the names appear in the order stated at opening. The claim that only the first holder signs or provides KYC is wrong, as each holder must be identified. Joint accounts are not restricted to non-residents.

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