Can A Person Have Multiple Demat Accounts In India?

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Most new market participants gabble with the question - can we open multiple Demat accounts and their legalities? Let us help you if you also have the same query - can I open multiple Demat accounts.

Is opening multiple Demat accounts illegal?

A Demat account is a prerequisite to investing in the stock market. Whether it is a primary or secondary market, you need a Demat account to take the delivery of stocks. This is per the guidelines set by the Securities and Exchange Board of India (SEBI). You can hold various financial assets, including mutual funds, bonds, etc., in your Demat accounts.

The SEBI allows investors more than one Demat account in their name. Therefore, it is not illegal to have multiple Demat accounts.

Important things to know to open multiple Demat accounts

  • Link to PAN:

    All your Demat accounts will be linked to your PAN (Permanent Account Number) card. Investors need to complete the KYC formalities for each Demat account separately for each broker.
  • Freezing of Account:

    Investors should open more than one Demat account only when they need it. An inactive Demat account gets frozen or inactive after a stipulated period and you need to complete the KYC formalities again with the broker to reactivate the account.
  • Annual Maintenance Charges (AMC):

    Demat account holders need to pay AMCs to stockbrokers for their Demat services. Each Demat account will attract different AMCs.

Can a person have 2 Demat accounts?

Most individuals ask brokers 'can I open two Demat accounts?' The straightforward answer is yes. Investors can consider opening two Demat accounts with a discount broker and a full-service broker simultaneously.

Advantages and Disadvantages of Holding Two Demat Accounts

While finding the answer to - can we have multiple Demat accounts - and making a decision, investors should go through the positives and negatives of multiple Demat accounts.

Advantages of Holding Two Demat Accounts

  • Categorisation of Portfolio:

    By creating multiple Demat accounts, you can easily segregate your investment and trading portfolios.
  • No Minimum Balance:

    There is no need to store securities to meet a minimum balance requirement on your Demat accounts.
  • Link to Single Trading Account:

    You do not need two trading accounts. A single trading account can be linked to multiple Demat accounts. However, this can vary from broker to broker.
  • Distribution of Investments:

    Two different demat accounts can help you manage different kinds of investments. If you invest in bonds, equities, debentures etc. You can segregate these investments on different demat accounts to track better, depending on the size of your investment.

Disadvantages of Holding Two Demat Accounts

  • Account Deactivation:

    If you do not use a Demat account for a certain period, it will be deactivated by the broker.
  • Extra Expenses:

    When you open two Demat accounts, you need to pay AMC for both accounts even if any of these accounts is not in use.


Thus, you can open multiple Demat accounts with a single PAN card but with different stockbrokers and the answer to ‘how many Demat account one can open’ depends on your investing and trading requirements in the stock market.

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Can I open multiple demat accounts?

Answer Field

Yes, you can open multiple demat accounts but only under the below conditions:

  • You can open only one demat account per DP using the same PAN card.
  • You can open multiple demat accounts with different DPs using the same PAN card.

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