How Many Demat Accounts One can have?


To start with how many Demat accounts one can have? This question often arises in the minds of new and prospective investors entering the stock market. The answer is pretty simple: there is no restriction on the number of Demat accounts one can hold in India. Although this flexibility has many benefits, there are certain things to keep in mind. We will examine the laws and guidelines pertaining to numerous Demat accounts in this extensive guide, highlighting the advantages and possible disadvantages. Making wise judgments during your investing journey requires that you comprehend these factors. Let's examine the required information on the number of Demat accounts that an individual may own as well as the consequences of having several accounts.

Demat Account

A Demat account acts as a digital locker where investors can hold shares, mutual funds, bonds, and other financial instruments electronically. You can get hold of this account by approaching a registered SEBI-licensed stockbroker. That said, how many Demat accounts one can have? 

The aforementioned question is a common question asked by new investors or soon-to-be-investors in the stock market. The short, straightforward answer is “yes”; but when you consider the various factors—it gives rise to the question: should one open multiple Demat accounts? So, in this article, we will explore the rules and regulations regarding multiple Demat accounts and also look at the advantages and disadvantages. 


Can I Open Two Demat Accounts in India?

The simple response to the question "Can I open two Demat accounts in India?" and "Can I have multiple Demat accounts?" is an emphatic YES. 

You can open several Demat accounts with as many Depository Participants (DPs) or brokers as you'd like, just as you may open multiple bank accounts with different banks. All Demat accounts, however, need to be linked to your Permanent Account Number (PAN). Additionally, an investor is limited to opening a single account with a DP or broker; that is, a broker may not create many Demat accounts. The maximum number of Demat accounts an investor may create is uncapped, nevertheless.   

How to Check How Many Demat Accounts I Have?

NSDL and CDSL websites allow you to check your active Demat accounts by providing your PAN card number. Demat accounts provide you with a place to store and track your investments. Since all investors can own multiple Demat accounts, the NSDL and CSDL provide them access to a master database of all their Demat accounts and statements.

Moreover, the website or app of the DP holding the individual Demat account can be used to view the account status and balance of that account, and your CAS can be used to view the status of your Demat accounts across all DPSs.

Regulations Regarding the Number of Demat Accounts

A person is permitted to have numerous Demat accounts in accordance with the regulations of the Securities and Exchange Board of India (SEBI). It is important to keep in mind, though, that the owner of a Demat account shouldn't use several accounts for illicit activities like money laundering, tax avoidance, or insider trading. In these situations, the SEBI has the authority to penalise the violator severely.

There is no restriction on how many Demat accounts one person may have. One is allowed to have an unlimited number of Demat accounts. Owning multiple Demat accounts, however, can lead to confusing scenarios, which are time-consuming. Additionally, it may result in transaction fees, account maintenance charges, and other costs. 

That said there are also reasons why you would probably want to open a numerous Demat account. So, let's look at the advantages and disadvantages of opening multiple Demat accounts

Advantages and Disadvantages of Multiple Demat Accounts

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

Advantages of Multiple Demat AccountsDisadvantages of Multiple Demat Accounts
Segregation of Investments:  Investors can separate their investments based on their financial objectives by opening numerous Demat accounts. This allows for better tracking and informed decision-making.Increased Costs: Each Demat account carries its own fees, and having too many accounts can lead to higher expenses, including transaction fees and account maintenance charges.
Diversification: Opening Demat accounts with various brokers grants investors access to a wide range of financial products. This diversification helps in spreading risks associated with a single type of asset.Confusion in Tracking Investments: Managing multiple Demat accounts can be complex. Failing to track investments across various accounts can lead to confusion, potentially resulting in missed opportunities or lost investments.
Better Investment Management: Multiple Demat accounts enable investors to efficiently monitor transactions and account statements. This provides a clear overview of their holdings, aiding in making well-informed investment decisions.Compliance Issues: Adhering to SEBI rules for demat account is crucial for all Demat account holders. Having multiple accounts can lead to compliance challenges, such as delayed document submissions or non-compliance with KYC requirements.
Access to Multiple Trading Platforms: Different brokers offer varying trading platforms. With multiple Demat accounts, investors can access and compare various platforms, choosing the one that aligns best with their investment needs.Risk of Fraud: Maintaining multiple Demat accounts can increase the risk of fraud, including phishing and hacking attempts. It's imperative to implement security measures like two-factor authentication and robust passwords.
Flexibility in Trading: Multiple Demat accounts provide investors with greater trading flexibility. For example, if one account is temporarily suspended, investors can continue trading in other accounts without interruption.Inactive Accounts: Having too many Demat accounts can lead to some accounts becoming inactive. Inactive accounts may incur fines or even be subject to closure after an extended period of inactivity.



In India, an individual is permitted to have an unlimited number of Demat accounts. Having numerous Demat accounts, though, can be complicated and expensive, therefore, to prevent any confusion & ensure better investment management, it is advised to have no more than two to three Demat accounts. To avoid fines, investors must also make sure that all of their accounts are open and in good standing with the law. Investors can manage their investments effectively and gain from the benefits of holding stocks and securities electronically by doing this. Additionally, if you are new to trading and need help understanding it, you may check out the user-friendly BlinkX trading app, which provides online support and direction.

FAQs on How Many Demat Accounts One Can Have

SEBI does not prohibit investors from opening multiple Demat accounts with different depository participants. To open a Demat account(s), you can approach any discount or full-service stockbroker. 

By opening multiple Demat and Trading accounts, you can gain a deeper understanding of the capital markets. Also, you can choose from multiple interfaces to place trades. Having multiple accounts also makes it easier for you to separate long-term investments from short-term investments. Yet, it may cost more to maintain multiple Demat and Trading accounts. So, consider the pros and cons of opening multiple Demat/Trading accounts before opening one.

With the same mobile number and PAN, you can open multiple Demat Accounts. There is only one condition: Multiple accounts with the same DP are not allowed.

As long as the person's PAN is linked to all his or her Demat Accounts, a person can keep more than one Demat Account.


It is beneficial to open several Demat and Trading accounts, but maintaining multiple accounts may be more expensive. Additionally, managing multiple accounts requires more time. Furthermore, the stockbroker may freeze your account if you do not use them for a certain period of time. Therefore, it is important to select a broker who provides the best solutions and has a deep understanding of your investment goals.

The answer is that two Demat accounts can be connected to the same bank account. Ensuring adherence to SEBI standards and the broker's practices is important, though.


Yes, it is allowed to have two Demat accounts with the same broker. This provides flexibility in managing different types of investments or strategies within a single brokerage.