loader2
Partner With Us

Can we open 2 demat accounts with one PAN number?

You may open multiple demat accounts, but all accounts should be linked with one PAN number

A demat account is one in which investors can hold their investment 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 intending to invest in the Indian share market. Demat and trading accounts offer easy and convenient trading and investing facilities. Traders today can open Demat account online and offline with minimal Demat account opening charges.

Opening more than one demat account

Many investors are unsure whether they can open two demat accounts. The answer is yes; you can open two demat accounts. That said, you need to know the terms and conditions to open a second demat account, starting with the significance of linking PAN number with demat.

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

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

Things to remember about opening more than one demat accounts

  • Investors are legally allowed to open two or more Demat accounts, so long as the accounts are opened against a single PAN number.
  • The securities purchased through multiple Demat accounts are attributed to the unique PAN number.
  • You should link your PAN number 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. .

Demat accounts and benefits

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 desktop and mobile application platforms. 

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.

Most Popular

f
  • 15 Sep 2021
  • ICICI Securities

5 Most Popular Reasons for Switching Bank

In the beginning, you would hear from them quite often. But of late, you're noticing more and more signs that it's no longer working. We are referring to your relationship with your bank. Click here to read how to recognize the red flags in your banking relationship and why it might be a good time to end the bond.

  • 15 Sep 2021
  • ICICI Securities

How Intraday Trading Works? Detailed Ideas

Intraday trading in India has been gaining momentum of late. It is no longer the option of only trade pundits.

  • 15 Sep 2021
  • ICICI Securities

What is Intraday trading? A Beginner's Guide

With the advancement of technology and increased knowledge about the stock market, trading is no more a domain dominated by stock pundits.

  • 05 Sep 2021
  • ICICI Securities

Is it Good To Invest in Cyclical Stocks?

Akin to how the pedals of a cycle go up and down as it moves forward, the share price of certain stocks goes up and down in accordance with the economic cycles a country goes through. 

  • 05 Sep 2021
  • ICICI Securities

A primer on Fixed Maturity Plans

If you happen to have some surplus funds which you don’t need for a specific period, but you don’t want to take the risk of investing this money in the stock market, you can very well put this money in a Fixed Maturity Plan or FMP. 

  • 05 Sep 2021
  • ICICI Securities

How to Choose the Best Equity Mutual Fund

You must have heard a lot about investing in mutual funds. But before jumping on this trend you need to assess a mutual fund scheme according to your goals, investment horizon, risk profile, liquidity needs and many other factors to find a suitable match. 

  • 05 Sep 2021
  • ICICI Securities

A Beginner’s Guide to Monetary Policy Tools

The Reserve Bank of India has the incredibly crucial responsibility to formulate the monetary policy. The main objective of monetary policy is to control inflation and provide a conducive environment for the country's economic growth. 

  • 05 Sep 2021
  • ICICI Securities

Buying Penny Stocks and its Risks

There is a specific category of stocks whose prices are very low and they seem to yield exponential returns. But do you know that investment in such stocks could be risky? 

  • 05 Sep 2021
  • ICICI Securities

How to Choose the Best Debt Mutual Fund?

Debt mutual funds primarily invest in fixed income securities, which include money market instruments like commercial papers, corporate bonds, treasury bills, government bonds and other instruments.

  • 05 Sep 2021
  • ICICI Securities

Tax Saving Using Section 80D

“Make your life safe and get insurance immediately”. This statement was never more relevant than the times when the pandemic threatens to wipe off the population. 

Open an Account

Sign Up for Free

+91

Please use the mobile no registered with Aadhaar.

OTP sent to +91 1234567890

Didn’t received OTP? Resend

00:30

iciciDirect-money-logo
iciciDirectMoney-App

Get Research Backed Recommendations.

Download The app now

or Scan below QR Code To download app

QRcode