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

Which of the following is true about the charges and the intimation to a client after a demat account is opened by a DP?

After opening the account the DP must give the client the 16-digit BO ID (DP ID plus client ID) and provide copies of the signed documents, including the charges schedule. The ID is unique and cannot be changed arbitrarily by the DP.

  1. AThe DP need not give the client any account number
  2. BThe DP must provide the client a unique client ID and the DP ID forming the 16-digit BO ID, and give a copy of the executed documents with tariff scheduleCorrect
  3. CThe BO ID has 8 digits only for all accounts
  4. DThe DP can change the client ID anytime without notice

Explanation

A BO ID is a 16-digit number made up of the DP ID and client ID, which is unique. The DP must give the client a copy of the agreement and rights and obligations document along with the fee schedule. The BO ID is not 8 digits for all accounts and cannot be changed arbitrarily.

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