When you want to start investing in the stock market, you necessarily need a demat account. But have you ever wondered how many demat account one can have? Also, is it legal to open multiple demat accounts?
Can I Have Multiple Demat Accounts?
Yes, you can legally have more than one demat account in India. But there are specific rules that one should keep in mind before opening multiple demat accounts.
- There is no limitation in the number of demat accounts one can open, but he/she has to make sure that the stockbroker is different every time. This means that if you already have a demat account with broker A, you cannot open another one with the same broker.
- Make sure that you have a valid PAN card.
- If you have inactivate demat accounts, make sure that you close them as they might result in a lot of additional charges.
Apart from experiencing your trading journey with various stockbrokers, opening multiple demat accounts in India has some other advantages.
- You can avail the services of different stock brokers like apps, stock tips, etc.
- One can open a demat account with discount brokers and full-service stockbrokers and get the best services.
- Every stockbroker has a different brokerage plan, and some might even have some brokerage-free segments. Therefore, opening multiple demat accounts can also help you reduce brokerage charges. E.g., if a stockbroker ‘A’ gives delivery free and ‘B’ lets you trade for free in the intraday segment, then you can simultaneously use them and make the most of it.
There are some disadvantages as well if you have more than one demat account.
- You will have to pay different AMC charges for all the brokers.
- It can often get difficult for a trader to manage different demat accounts.
Hope you now understand that you can open multiple demat accounts by keeping some regulations in mind. If you have any stock market queries, you can fill in your details below and we will try to resolve them as soon as possible.
