Most people wonder if it is safe for an investor to have two demat account opening in India. In fact, an investor can have multiple demat accounts without any legal issues.
Using your PAN Card card, you can open multiple demat accounts. All the equities purchased on your demat account correctly connected with your PAN card will be mentioned as your property.
However, the essential point to consider is that you can open multiple demat accounts from different brokers. But, you cannot open more than one demat account with the same broker. For instance, if you have opened a demat account with an online discount broker, you can consider another demat account from a reputed full-service broker such as Kotak Securities.
There are various benefits to having more than one demat account. Smart investors are keen to get the most from their investing experience. For example, some traders opt for parallel trading accounts from a full-service stockbroker and a no-frills online stockbroker.
Based on the kind of trading, one is looking at putting up; an investor can select a stockbroker of his or her choice. Some important aspects to consider when selecting the right stockbroker include:
One can operate two demat accounts or multiple demat accounts parallelly without having to close any existing demat accounts. The stocks you purchase through your trader and held in your demat account is under the control of the two central depositories, CDSL or NSDL. Additionally, the SEBI, indices and other regulatory bodies support these depositories. Thus, you are assured that the broker or trader does not control your shares; instead it is in safe hands.
Two demat accounts can help segregate your long-term investments and short-term or frequent trading. This can ensure discipline in your investment and avoid confusion in your stock portfolio.
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