If you want to trade in financial securities like stocks, bonds, and mutual funds in India, you must have a Demat account. A Demat account holds all your financial security holdings in dematerialised form. It also contains a record of your security transactions and changes in ownership when you buy or sell.
A Demat account is provided by banks and Depository Participants (DP). An individual without a Demat account cannot trade in securities. Along with a Demat account, you also need a trading account that provides the interface to buy or sell securities. Let’s find out more about a Demat account. Can an individual have more than one Demat account?
Legally, you can have as many Demat accounts as you want. Nevertheless, it is best to consolidate them into 2 or 3 accounts for seamless transactions and easy management, depending on your investment portfolio. So weigh the pros and cons carefully before you decide to have multiple Demat accounts.
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