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Can we Open Two Demat Accounts with One PAN Number?

ICICI Securities 26 Feb 2021 0 COMMENT

There may be a situation where you want to open more than one Demat Account with a single PAN. For instance, you may want to open a Demat Account for yourself and your minor child. You can open multiple Demat Accounts in such cases, but they all have to be linked with your PAN.

What is a Demat Account?

A demat account is an account in which investors can hold their securities in the dematerialised or electronic form. Introduced in India in 1996 by the Securities and Exchange Board of India (SEBI), Demat Accounts are mandatory for investors who intend to invest in the Indian stock market. Demat and Trading Accounts offer easy and convenient trading and investing facilities. Traders today can open Demat Accounts online and offline.

Additional Read: How many Demat accounts can one have

Opening more than one Demat Account

Many investors are unsure whether they can open two Demat Accounts. The answer is yes, you can open more than one Demat Account. That said, you need to know the terms and conditions to open a second Demat Account, starting with the significance of linking your PAN with the account.

What is PAN and why should you link it with Demat?

The Government of India assigns a unique Permanent Account Number or PAN to every citizen. The PAN enables regulatory bodies to ascertain the financial investments made by investors. It helps them check their tax liabilities and track their finances.

The SEBI has made it mandatory to link your Demat Account with your PAN card. This is to ensure that your investments can be tracked and taxed accordingly.

Things to remember about opening more than one Demat Account

Investors are legally allowed to open two or more Demat Accounts as long as the accounts are opened against a single PAN.

The securities purchased through multiple Demat Accounts are attributed to the unique PAN.

You should link your PAN to every Demat Account you open.

You cannot open two Demat Accounts with the same depository participant. DPs serve as the link between investors and the depositories in India that offer demat services – the NSDL and CDSL.

You can open a different name combination Demat Account (i.e. in joint name) with a DP, if required.

Benefits of Demat Accounts

With the advent of Demat accounts, stockbroking is digitised, enabling smooth, reliable and transparent investing. Since shares and securities are held electronically, the hassles and risks of securing and trading physical share certificates are mitigated. Also, you can track your investments online through a desktop as well as mobile application platforms. 

Additional Read: Features and benefits of a Demat Account


Whether you want to open an additional Demat Account for a minor, another Demat Account for yourself, or a joint Demat Account, SEBI allows you to do that. However, just keep in mind that all your Demat Accounts have to be linked to a single PAN card, and you will be taxed accordingly.


    1.  Can a person hold 2 Demat Accounts with same PAN?

Yes, a person can hold more than one Demat Account as long as they are all linked to a single PAN.

    2.  How many Demat Accounts can one open?

There is no limit on the number of Demat Accounts an individual can open. However, you cannot have more than one account with the same DP. You also need to link every Demat Account with the same PAN.

    3.  Can two Demat Accounts have same mobile number?

Yes, you can open multiple Demat Accounts with the same mobile number and PAN. The only condition is that you cannot hold more than one account with the same DP.

    4.  How can I check how many Demat Accounts I have?

You can check your active Demat Accounts on the NSDL and CDSL websites by providing your PAN card details.

Disclaimer: The contents herein mentioned are solely for informational purposes and shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.