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

Ravi Kulkarni wants to open a demat account with a depository participant (DP). Under the depository framework, which statement about the number of demat accounts he may hold is correct?

An investor may open multiple demat accounts, either with the same DP or different DPs, and with either depository such as NSDL or CDSL. There is no regulatory cap of one account per person, so Ravi is free to hold several accounts.

  1. AHe may hold only one demat account across all depositories
  2. BHe may open multiple demat accounts, with the same or different DPs, and with either depositoryCorrect
  3. CHe may open accounts only with one depository but with many DPs
  4. DHe may open only one account per DP, and only with a single depository

Explanation

An investor is free to open more than one demat account, with the same DP or different DPs, and with either NSDL or CDSL. There is no rule limiting an individual to a single account or a single depository. The other options impose restrictions that do not exist.

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