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

While opening a demat account for an individual resident, the DP receives a PAN card copy. What must the DP do with it?

The DP must verify the PAN against the original document or the Income Tax database, because PAN is mandatory for every account holder. No exemption applies based on small holdings or joint holder position.

  1. AAccept the photocopy without any verification
  2. BVerify the PAN details against the original or through the Income Tax database, as PAN is mandatory for all holdersCorrect
  3. CWaive PAN if the investor holds fewer than 100 shares
  4. DAccept PAN only for the second joint holder

Explanation

PAN is mandatory for every holder in a demat account, and the DP must verify it with the original or the Income Tax database. No exemption exists based on the number of shares held. Verification applies to all holders, not just one.

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