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Which of the following statements are correct regarding demat accounts?

(i) A minor can be a joint holder in a demat account

(ii) Demat account eliminates the risk of bad delivery, fake securities, delays, thefts, etc.

(iii) Holding investments in equity and debt instruments in a single account is not possible with a demat account

(iv) A bank providing depository services as a Depository participant does not require a certificate of registration from SEBI

  • a)
    Both (i) and (iv)

  • b)
    Only (ii)

  • c)
    Both (ii) and (iii)

  • d)
    (i) and (iii)

Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Which of the following statements are correct regarding demat accounts...
Demat Accounts

Demat accounts have become essential for investors in the modern financial landscape. Let's analyze the statements given in the question:

Statement (i): A minor can be a joint holder in a demat account
- This statement is correct. A minor can be a joint holder in a demat account with a guardian.

Statement (ii): Demat account eliminates the risk of bad delivery, fake securities, delays, thefts, etc.
- This statement is correct. Demat accounts help in reducing the risks associated with physical securities such as bad delivery, fake securities, delays, thefts, etc.

Statement (iii): Holding investments in equity and debt instruments in a single account is not possible with a demat account
- This statement is incorrect. Demat accounts allow investors to hold various types of securities like equity shares, bonds, debentures, mutual fund units, etc., all in a single account.

Statement (iv): A bank providing depository services as a Depository participant does not require a certificate of registration from SEBI
- This statement is incorrect. Any entity providing depository services as a Depository Participant needs to obtain a certificate of registration from SEBI (Securities and Exchange Board of India).

Therefore, the correct answer is option B, which includes the correct statements (i) and (ii). Demat accounts offer numerous benefits to investors, including convenience, safety, and efficiency in managing their securities portfolio.
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Community Answer
Which of the following statements are correct regarding demat accounts...
A minor cannot be a joint holder in a demate account, and a bank providing depository services as a Depository participant must hold a certificate of registration issued by SEBI.
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Which of the following statements are correct regarding demat accounts?(i) A minor can be a joint holder in a demat account(ii) Demat account eliminates the risk of bad delivery, fake securities, delays, thefts, etc.(iii) Holding investments in equity and debt instruments in a single account is not possible with a demat account(iv) A bank providing depository services as a Depository participant does not require a certificate of registration from SEBIa)Both (i) and (iv)b)Only (ii)c)Both (ii) and (iii)d)(i) and (iii)Correct answer is option 'B'. Can you explain this answer?
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