Joint Demat and Trading Account Details
Most people wonder if they can open a joint trading account. The answer is No. Find out why.
If you intend to invest in the Indian securities market, you need to open a trading account. A trading account is one which enables you to buy and sell your market securities and execute your share market trades. You also need another account, known as a demat account wherein you can hold those securities in an electronic form. So, if you intend to invest in the share market, you need both demat and trading accounts.
These accounts are provided by stock brokerage companies, known as stockbroker, and it is recommended that you open your demat and trading accounts with the same entity.
How to open a trading account?
The process of opening a trading account is quite simple. You can do it both online and offline.
To open the trading account online, you need to visit the broker's website and apply. Follow the instructions, provide your contact details in the application form and submit it to the broker. The broker contacts you and assists you with opening the trading account online (if required), wherein you have to submit copies of your PAN, identity and address proof documents (as per the Official Valid Documents list) and complete the KYC formality. The broker then opens your trading account in a few minutes.
The account opening process can also be completed offline by visiting the branch or office of the broker with your PAN, ID and address proof documents.
Can you open a trading account jointly?
Investors can't open a trading account jointly. You can open a trading account only against a single name. This is attributed to the fact that every trading account is linked to the investor's individual PAN number. The PAN number linked to the investor allows the IT department to track the income and investment details and the tax liabilities of the investor. It also eliminates any confusion regarding tax liabilities, which may arise when trades are conducted jointly by two or more people.
Can you open demat accounts jointly?
While it is not possible to open joint trading accounts, investors can open demat accounts jointly as well as individually. In the case of demat accounts; there can be a maximum of three account holders, i.e. one primary holder and two joint holders. However, you cannot open a joint demat account with a minor.
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.