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

Ms. Kavita Rao opens a joint demat account with her husband. Regarding the account holders, which statement is correct?

A demat account may be opened jointly by up to three persons, and the first-named person is the primary holder. The order of names must match the order in which securities are held. Limits of two or five holders are incorrect.

  1. AUp to three holders can be named, and the first holder is called the primary holder whose name appears firstCorrect
  2. BOnly two holders are allowed and no minor can ever be included
  3. CUp to five holders may be named with equal priority
  4. DJoint accounts cannot be opened with a spouse

Explanation

A demat account can have up to three joint holders, the first named being the first or primary holder. Statements allowing five holders or barring spouses are incorrect. Account holder name order must match that on the securities.

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