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

Ms. Kavita Rao walks into a Depository Participant's office to open a demat account. Which of the following is the account type that an individual resident investor would normally open for holding securities in her own name, with no special restrictions?

An individual resident investor who wants to hold securities in her own name opens a regular demat account. The other accounts named are operational accounts used by clearing members, intermediaries or issuers for settlement or escrow purposes and are not ordinary investor holding accounts.

  1. AClearing member pool account
  2. BRegular demat accountCorrect
  3. CCorporate issuer escrow account
  4. DIntermediary settlement account

Explanation

An individual resident investor holding securities in her own name opens a regular demat account. Pool accounts and settlement accounts are used by clearing members and intermediaries, and escrow accounts are used in corporate or issue-related arrangements, not by ordinary individual investors.

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