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

Ravi Menon, a resident individual, wants to open a demat account with a Depository Participant (DP). Under the account opening procedure, which document must the DP obtain from him as a mandatory part of the KYC process for establishing identity?

The DP must obtain a copy of the investor's PAN card, verified against the original, as the mandatory identity document in KYC. Salary slips, broker references or bank guarantees are not needed to open a basic demat account.

  1. AA copy of his latest salary slip
  2. BA copy of his Permanent Account Number (PAN) card, verified with the originalCorrect
  3. CA reference letter from his existing broker
  4. DA bank guarantee for the annual maintenance charges

Explanation

PAN is mandatory for identity in KYC for securities market accounts, and the DP verifies the copy with the original (or through e-verification). Salary slips, broker references and bank guarantees are not required for opening a demat account.

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