NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Opening
While opening a demat account, the DP and the client sign the agreement that sets out their rights and obligations. This agreement is generally called the:
The agreement signed between a DP and the client at account opening is the depository participant-client agreement. It records the rights and obligations of both sides in the format specified by the depository. The other agreements named are between different parties.
- ADepository participant-client agreementCorrect
- BIssuer-registrar agreement
- CTrading member-clearing member agreement
- DDepository-issuer agreement
Explanation
The DP enters into an agreement with each client, in the format prescribed by the depository, covering the rights and duties of both. The other agreements are between different parties, such as the depository and issuers or brokers and clearing members.
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