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

Ms. Kavya Nair walks into a Depository Participant's office to open a demat account. Which of the following is the correct description of the document that sets out the rights and obligations of the DP and the client and must be signed at account opening?

The client signs the account opening form along with the standard agreement between the DP and the client, which records the rights and obligations of both parties. Delivery instruction slips, statements and powers of attorney are separate and are not the basic agreement.

  1. AAccount opening form together with the DP-client agreementCorrect
  2. BDelivery Instruction Slip booklet
  3. CTransaction statement issued monthly
  4. DPower of attorney in favour of the stock broker

Explanation

At account opening the client signs the account opening form and the agreement with the DP that specifies rights and duties of both. A DIS booklet is issued after the account is opened and is used for transfers. A transaction statement is a periodic report, and a POA is optional and not the basic agreement.

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