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Can A Person Have Multiple Demat Accounts In India?

  • Highlights

  • Multiple demat accounts and legality

  • The requirement for multiple demat accounts

  • Advantages of multiple demat accounts

  • Advantages of multiple demat accounts

Can A Person Have Multiple Demat Accounts In India?

A Demat account is the first step to fulfil to carry out a purchase in the stock exchanges. Once a Demat account is opened with a registered depository participant (broker), you can buy shares and other financial instruments online.

An investor can open multiple Demat Accounts with different brokers with a valid PAN card. Securities and Exchange Board of India (SEBI) does not levy any limitation on opening more than one Demat accounts in India. It is necessary that all Demat accounts are properly linked to PAN so that comprehensive data of all investments can get stored in the central database of SEBI. This is to ensure all financial holdings of an investor are tracked by SEBI through PAN only.

Multiple Demat Accounts and Legality

It is absolutely legal to open multiple Demat accounts. However, it is not allowed to open multiple Demat accounts with the same brokerage firm. Investors need to fulfil all KYC requirements every time they open a new Demat account. One can open multiple Demat accounts with full-time brokers and discount brokers simultaneously.

Things to Know About Opening Multiple Demat Accounts

  • A trader can have multiple demat and trading accounts. There is only one condition in this situation, you cannot open multiple demat and trading account with the same stockbroker or same depository participant. You can only have one demat and trading account with one stockbroker.
  • Multiple demat and trading account helps in maintaining the investment and trading portfolio differently.
  • A trader should be aware of the charges which comes with a demat and trading account with different stockbrokers. The charges can be like AMC (Annual Maintenance Charge) which is charged by the broker to maintain the account from the backend.
  • If a trader or an investor opens multiple demat and trading accounts, he/she needs to be active on the same as brokers freeze the accounts if it will not be active for a longer time.

The Requirement for Multiple Demat Accounts

For a person who is both a long-term investor and a trader, multiple Demat accounts will surely make it easy for him to keep a track of his transactions with the stock exchange. It is quite convenient for everyone to keep trading securities in one Demat account and other investment instruments in another Demat account.

Some traders may want to store their investments separately based on the goals, terms, stock type, stock exchange, etc. Multiple Demat accounts will surely help them to manage their securities without any confusion.

Additional Read: How To Open Demat Account?

Advantages of Multiple Demat Accounts

  • Multiple Research Reports
    By opening different demat accounts with different brokers, you can simultaneously avail the services of different brokers. You can access a variety of research reports that will be helpful to trade more efficiently. You can also get an exposure to multiple trading platforms.


  • Easy Tracking
    Multiple Demats facilitate segregating trading portfolios and investment portfolios thereby making it easy to keep a track of transactions.


  • One Trading Account
    It is not necessary to open multiple trading accounts to have multiple Demat accounts. You can link one trading account with multiple Demat accounts.


  • Easy Tracking
    The goal of intraday trading is not to own the stocks, it’s rather to make profits by reaping the benefit of price movements during the day.


Limitations of Multiple Demat Accounts

  • Extra Expenses
    Every broker will charge a fee for a Demat account in the form of annual maintenance charges (AMC) even if the account holder is not using that Demat account.


  • Freezing of account
    In case a person keeps a Demat account idle for a longer period, the broker can freeze that account unless the KYC formalities are completed again.


  • Time Consuming
    An investor must monitor the transactions carried out in every Demat account regularly. However, it might be difficult for most investors to do so and they may end up by consolidating all idle Demat accounts. An extra activity of consolidation becomes an additional hassle.


Additional Read: What is Intraday Trading?

Taking Care of Multiple Demat Accounts

Most new investors grapple with the question - can I open two Demat accounts and its legalities. While the answer is a simple yes, multiple accounts demand proper care to avoid any kind of fraudulent situations. Multiple Demat accounts are the most beneficial for seasoned traders who have enough time to monitor multiple Demat account activities regularly.

Ideally, two Demat accounts - one for trading and another for investing - are advised. If an investor is unable to manage multiple accounts, he can go for consolidation of these.

Investors need to analyze their Demat account requirements before opening multiple demat accounts.

Disclaimer: Investments in securities market are subject to market risk, read all the related documents carefully before investing. Visit our website for other Terms & Conditions.

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