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Is it Possible to have Two Demat Accounts?

05 Feb 2021 0 COMMENT

Yes, you can have two demat accounts linked to the same PAN card.

The purpose of a Demat Account is to hold shares and securities in an electronic format. When you buy securities, they are credited to your Demat Account. On selling securities, they get debited from your Demat Account.

However, you cannot use a Demat Account for trading in shares. For that, you need a Trading Account. It is recommended that you open your Demat and Trading accounts with the same service provider to ease your transactions. The DP could be a bank or a stock broking firm.

You can open a Demat Account both online and offline. It is convenient to open a Demat Account online as the process saves time. Many banks and brokerage firms also provide free Demat Account opening services.

Can You Open Two Demat Accounts?

While looking at how to open a Demat Account, many investors are keen to know if they can open two or more Demat Accounts. The answer is yes. Similar to bank accounts, you can have two or more Demat Accounts. However, the only condition is that all your Demat Accounts have to be linked to the same PAN card.

Every individual has a single PAN card, which is used to open Demat Accounts. A person can open two (or more) Demat Accounts against the same PAN card. All the securities you buy and sell will be linked to you through your PAN card.

However, you cannot have two Demat Accounts with the same stockbroker. The two accounts you open will have to be with different stockbrokers. Also, you cannot apply for more than one application in an IPO despite having multiple Demat Accounts.

Additional Read: How many Demat accounts can one have

Advantages Of Having Two Demat Accounts

There are advantages to having two Demat Accounts. Different stockbrokers offer different services and have a distinctive set of strengths and weaknesses. They allow trading in various products. To reap the best of both worlds, it makes sense to have two Demat Accounts. You can have different trading accounts linked to your Demat Accounts.

Some traders also open two Demat Accounts as they want to segregate their trading and investing practices. The option allows them to focus on their investment goals.

Disadvantages Of Having Two Demat Accounts

There are a few drawbacks to having more than one Demat Account. For instance, you will have to pay separate annual maintenance charges for both the accounts. You also have to track each Demat Account separately.

Conclusion

It is possible for an individual to have more than one Demat Account as long as they are linked to the same PAN card. Also, it may be judicious to note that you cannot open more than one Demat Account with the same broker or DP. There may be many reasons why you may want to open more than one Demat Account. As long as you understand what goes into it, you can go ahead and open as many accounts as you wish.

FAQs

   1.  Is it okay to have 2 demat accounts?

Yes, you can have two Demat Accounts as long as they are linked to the same PAN card. Opening more than one Demat Account has numerous advantages, such as using different services provided by various brokers or opening one for a minor under your guidance. However, do note that having more than one Demat Account means that you will also have to pay additional charges in the form of annual maintenance.

   2. Can I have 3 Demat Accounts?

Yes, you can have three or even more Demat Accounts as long as they are linked to the same PAN card.

Disclaimer

The contents herein mentioned are solely for informational purpose 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.