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.