How Many Demat Accounts One Can Have?

In India, an individual can have any number of Demat accounts. The market regulator, SEBI, has imposed no such restriction on the number of Demat accounts a person can maintain. Nevertheless, one cannot hold more than one Demat account with one depository participant. If already having an account with one DP and wanting another, it has to be opened with another DP. 
 

 A Demat account holds all financial security holdings in dematerialised form and records security transactions and changes in ownership. Banks and Depository Participants provide Demat accounts, and individuals without a Demat account cannot trade securities. They also need a trading account for the interface to buy or sell securities. Let's learn more about what is a Demat account is and whether it is possible for a person to have many Demat accounts.  

Key Regulations and Points to Remember 

Here are key points to note: 

1. No Legal Limit: Though there is no legal prohibition on the number of Demat accounts an individual may hold in India, one person can open more than one account under the same PAN. 
2. PAN Link Required: All Demat accounts must be linked with the same PAN, as it helps regulators track holdings and transactions. 
3. One Broker Rule: No investor can have two Demat accounts with the same broker or DP. To hold multiple Demat acb counts, each must be held through a different broker/DP. 
4. Separate KYC: Each Demat account needs separate KYC, identity, address, PAN, etc. This is a requirement, irrespective of how many accounts one holds. 
5. Multiple Charges: Maintaining multiple accounts implies that charges have to be paid for each, such as account opening fees, annual maintenance charges. Some banks may also levy charges on accounts that are kept dormant. 
6. Inactive risk: Some accounts, if not used for a very long period, also run the risk of freezing or closure for inactivity, depending upon the policy of the broker. 

Requirement of Multiple Demat Accounts 

Multiple Demat accounts may be required for following reasons: 

• Having multiple Demat accounts helps traders as well as long-term investors keep track of all the activities related to stock market investing. 
• It enables investors to continue with trading stocks in one Demat account and hold their other investments, such as bonds, ETFs, or mutual fund units, in another for better organisation. 
• Some traders like to divide their portfolio based on objectives, risk taken, company type, or stock exchange traded on. 
• Having multiple accounts helps one to manage different strategies with ease-for instance, intraday trading in one account and long-term investment in the other. 
• This also helps investors review the comparison of various brokers' platforms, features, and charges, and use the one that best fits their every investment need. 
• In the case of a failure in one due to technical problems or a temporary suspension, the investor can always remain active by entering through another account. 

How to Check How Many Demat Accounts One Have?  

Investors can check how many Demat accounts they have with the help of following methods: 

Method 1: Check Using CDSL or NSDL 

1. Visit the Websites: Go to the CDSL or NSDL website. 
2. Fill Your Details: Type your PAN number, date of birth, and mobile number or email. You will get an OTP. 
3. Download Your Statement: Use the OTP to download your CAS (Consolidated Account Statement). 
4. See Your Demat Accounts: The CAS will show all your Demat accounts linked to your PAN, along with their 16-digit numbers. 

Method 2: Ask Your Stock Brokers 

1. Check Your Emails: Search your email for words like “Demat account,” “login,” or your broker’s name. You may find welcome emails. 
2. Open Your Broker App: Log in to each broker app you use. Your Demat account number is usually shown in the profile section. 
3. Contact Support: If you still don’t know, call or chat with your broker’s customer support. 
   Tell them your PAN and phone number, and they will help you find your Demat accounts. 

How to Manage Multiple Demat Accounts Effectively 

The following are the key tips to manage multiple Demat accounts effectively: 

• Track Holdings in One Place: Keep a simple spreadsheet or use a portfolio app where investors list account names, DP IDs, holdings, and login details. 
• Keep KYC and Contact Details Updated: Make sure to keep email, mobile, and address details updated. 
• Regularly Review CAS: Monthly/quarterly checks help identify duplicate accounts, unauthorised activities, or forgotten holdings. 
• Close Unnecessary or Duplicate Accounts: If an account is not being used, the investor should inform the DP and submit an account closure form. This helps avoid extra charges and keeps records simple. 
• Consolidate Where Sensible: Consider consolidating holdings into one trusted DP to reduce fees and paperwork. 
• Strong, Unique Logins: Secure each broker/DP account with unique passwords and 2FA where available. 
• Monitor Charges and Statements: Compare annual maintenance and transaction fees; close accounts that cost more than the benefit they provide. 
• Keep Documents Organised: store the forms for account openings, closure confirmation, CAS in PDFs in a folder (digital + backup). 
• Set Calendar Reminders: Set calendar reminders for periodic reviews, like every 3 months, to review holding and KYC. 
• Ask for Help if Needed: A Trust financial advisor and/or investor’s primary broker can assist in consolidating accounts or closing unnecessary accounts. 

Advantages and Disadvantages of Multiple Demat Accounts  

The following are some of the benefits of opening/owning multiple Demat accounts:  

Conclusion  

It is very well permitted to manage multiple Demat accounts in India, but it can become confusing and costly if not managed properly. Investors can stay compliant and organised by tracking their accounts, keeping KYC updated, and closing inactive accounts. Using a reliable stock market trading app may also help investors monitor investments smoothly and make informed decisions.