BUSINESS

How Many Demat Accounts One Person Can Open With One Pan Card?

You can have many Demat accounts, but they must all be linked to the same PAN number.

A Demat account is an electronic account where investors can keep their investment securities. Individuals who want to invest in the Indian stock market must have a Demat and trading account. It provides simple and convenient trading and investing options. Traders can now open Demat accounts both online and offline for a low Demat account opening fee.

While it is permissible to have numerous Demat accounts, you should be aware of the requirements. First and foremost:

How many Demat accounts can one have?

Investors are allowed to open several Demat accounts, but they must link the same PAN number to each one. Regardless of how many Demat accounts they own, the PAN number allows Indian regulatory authorities to identify the investment assets related to their owners.


Opening more than one Demat account

Many investors are uncertain if they are allowed to have two Demat accounts. Yes, you are allowed to open two Demat accounts. To open a second Demat account, you must first understand the terms and restrictions, beginning with the significance of attaching your PAN number to your Demat account.


What is a PAN number, and why should you link it with a Demat account?

Every resident in India is given a unique Permanent Account Number, or PAN number, by the Indian government. Regulatory organizations can use the PAN number to track financial investments made by investors. It assists individuals in determining their tax liabilities and keeping track of their finances.

What to Keep in Mind When Opening Multiple Demat Accounts?

  • Investors are permitted to open two or more Demat accounts as long as they are all linked to the same PAN number.
  • The unique PAN number is assigned to securities purchased through various Demat accounts.
  • Every Demat account you open should be linked to your PAN number.
  • With the same depository participant, you cannot open two Demat accounts. DPs act as a conduit between investors and the two Indian depositories that provide Demat services, the NSDL and the CDSL.
  • If necessary, you can open a separate name combination Demat account (i.e. in the joint name) with a DP.

Demat accounts and benefits

Stockbroking has become computerized with the introduction of Demat accounts, allowing for smooth, dependable, and transparent investing. The inconveniences and risks of securing and dealing physical share certificates are reduced because shares and securities are stored electronically. You may also keep track of your investments using PC and mobile application platforms.

Advantages Of Opening Multiple Demat Accounts

Investors can simply separate their short-term and long-term investments with multiple Demat accounts.

Investors who have numerous accounts might take advantage of the many advantages offered by different brokerage firms.

Closing Thoughts

The simple answer to the question ‘Is it okay to have numerous Demat accounts in India?’ is YES, as previously stated. In India, having numerous Demat accounts is acceptable.

However, before you register a second or third Demat account, think about the benefits and drawbacks of having numerous accounts. In India, having multiple Demat accounts incurs additional fees. Good luck with your investments!