Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

The mandatory detail that an investor has to provide to the broker at the time of opening a Demat account is

Options:

PAN number

Date of birth and Address

Residential status (Indian/NRI)

Bank Account Details

Correct Answer:

PAN number

Explanation:

If an investor wishes to buy or sell any security he has to first approach a registered broker or sub-broker and enter into an agreement with him. The investor has to sign a broker-client agreement and a client registration form before placing an order to buy or sell securities. He has also to provide certain other details and information. These include: • PAN number (This is mandatory) • Date of birth and address. • Educational qualification and occupation. • Residential status (Indian/NRI). • Bank account details. • Depository account details. • Name of any other broker with whom registered. • Client code number in the client registration form. The broker then opens a trading account in the name of the investo