Can I Open 2 Demat Accounts With The Same Broker?

Opening a Demat account with a stockbroker is easy and hassle-free. With a simple account opening procedure and multiple benefits provided by brokerage firms, Can I Open 2 Demat Accounts investors can open an account at the convenience of their homes. Over the last few years, there has been a surge in opening Demat accounts. According to reports, the number of new Demat accounts (opened by CDSL), jumped from 25 lakh in FY 2018-19 to approximately 38 lakh in FY 2019-20 in India.Can I Open 2 Demat Accounts

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Equity has become a major area of interest for investors today. And to invest in the equity market, you need to have a Demat account. You can open a Free Demat account with any reputable stockbroker, but the account is managed by a Depository Participant (DP).

Can You Open Multiple Demat Accounts?

An investor can have multiple Demat accounts. According to the markets regulator Securities and Exchange Board of India (SEBI), there is no limit to opening multiple accounts. However, you cannot have multiple Demat accounts with the same stockbroker.

In India, there are two main depositories: a) Central Depository Services India Ltd(CDSL) and b) National Securities Depository Ltd (NSDL). The Demat account must be linked to a Trading account. Without a trading account, an investor cannot sell the shares and securities.

When you open a Demat account with a stockbroker, your account is managed by a DP. According to SEBI guidelines, though you can open multiple Demat accounts, you cannot open them with the same DP. So if you have your first Demat account with Choice Broking where your DP is CDSL, then you cannot open the second Demat account with the same DP.

You have to open the new Demat account with another DP and these can be done through another stockbroker only.

What Are The Advantages Of Multiple Demat Accounts?

There are three primary advantages of having multiple Demat accounts:

  • Easy Segregation: When you have multiple Demat accounts, you can easily segregate between short-term and long-term investments.
  • Extra Perks: With multiple Demat accounts, you can get access to varied perks offered by different stockbrokers.
  • Diverse Portfolio: You can have a diverse portfolio with multiple Demat accounts. You can choose to invest in high and mid-cap funds in one Demat account, the second for regular trading, and the third for only mutual funds.

Is It Safe To Open Multiple Demat Accounts?

The Demat accounts are highly protected and your shares and securities are managed and held by the DP’s. Stockbrokers have no authority over it and without the investor’s permission, it is not possible to transfer/move your shares. So, it is absolutely safe to keep your shares in the Demat account even if you have multiple Demat accounts.


New investors are flocking to the stock market today to open a Demat account. With the possibility of good returns in the financial markets and easy account opening procedures offered by stockbrokers, investors are likely to open more than one Demat account.

And there is nothing risky or unsafe about it. It can be a smart move for most investors to segregate their investments based on the service and offers provided by stockbrokers. As the shares and securities are managed by DP’s, so it is safe even if you have multiple accounts.

To sum up, an investor can have multiple Demat accounts but with different brokers with different DP’s.

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