NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Opening
Sunita Traders, a partnership firm, applies to open a demat account in the firm's name. Which statement is correct as per the account opening norms?
A partnership firm can open a demat account in the firm's own name, supported by its PAN, partnership deed and authorised signatory details. It cannot be opened merely in a partner's name as a substitute, and company status is not needed.
- AAccount can be opened in the name of the firm itself, with the partners' authorisation and the firm's PAN, not in the name of the firm's partners individuallyCorrect
- BPartnership firms cannot open demat accounts at all
- CThe account must be opened in the name of the managing partner alone
- DAccount is opened in the firm's name only if it is registered as a company
Explanation
Partnership firms are permitted to hold demat accounts in the firm's name. The DP obtains the firm's PAN, partnership deed, registration details and authorised signatories' details. Opening it only in a partner's name would not make the firm the holder, and company status is not required.
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