How Many Demat Accounts Can Be Opened In India?
Holding a Demat and Trading Account is necessary if you want to invest in the Stock Market. A Demat Account is a depositary that holds your shares electronically. A Trading Account enables you to trade shares in the market. Both accounts work closely with each other to ensure a seamless transaction. Many investors have a common question: How many Demat Account can you open in India? Let us answer this question.
· You can open any number of Demat and Trading Accounts in India. However, there is one condition. You cannot open more than one Demat or Trading Account with the same Depositary Participant or brokerage firm. You need to move to another brokerage firm to open a new account.
· Your Demat and Trading Accounts should be linked to the PAN Card. The Securities and Exchange Board of India tracks all your investments through the card. With every new account you open, you need to complete the KYC procedure and link your PAN Card.
· Opting for multiple Demat Account opening is beneficial as it allows you to segregate your shares systematically. For instance, if you invest in the stock for trading and to meet long-term investments, you can segregate your shares accordingly. This helps monitor your investment performance better.
· Holding multiple Demat Accounts allows you to park your shares securely. The DP or brokerage firm can access your shares. They can only access and trade your shares when you give them the authority to do so.
· Every brokerage firm is known for offering a specific service. By opening multiple accounts, you can access the best services offered by various brokerage firms. Every firm brings its expertise with the market research reports they prepare. You can upscale your market knowledge and make better investments by reading these.
· Every Demat Account has an Annual Maintenance fee associated with it. This amount varies for each brokerage firm. You get charged even if your account is non-operational. Note these charges before opening an account. The lower the fee amount, the better it is.
· Remember to keep all accounts active. If the account is non-operational for a prolonged period, the broker freezes them. You must complete the KYC procedure to reactivate and trade from your account.
Furthermore, remember that you need not open multiple Trading Accounts for multiple Demat Accounts. You can link them all to a single Trading Account. This way, you only need to access one account to buy and sell shares. With the digital access provided for these accounts, you can check them anytime. If you find unauthorised shares of credit or debit, you should alarm your brokerage firm about the same.