Can I Open Multiple Demat Accounts in India? Rules, Benefits & Drawbacks

Can I Open Multiple Demat Accounts in India? Pros, Cons & Regulations

If you’re an active investor or considering a new broker, you might ask: Can I open more than one Demat account in India? The answer is yes—but it comes with important considerations.

In this blog, we’ll explain the rules, benefits, and risks of holding multiple Demat accounts, and when it makes sense to have more than one.

Is It Legal to Open Multiple Demat Accounts?

✅ Yes, it is completely legal to open and maintain multiple Demat accounts in India—as long as:

• You open them with different brokers

• All accounts are linked to the same PAN and are KYC-compliant

However, you cannot open two Demat accounts with the same broker.

Why Do Investors Open Multiple Demat Accounts?

1. Brokerage Comparison

Some brokers offer lower fees for different segments (Equity, F&O, MCX). Investors use separate accounts to minimize charges.

2. Strategy Segregation

Keep long-term investments and trading positions separate for better clarity.

3. Backup Option

In case one broker’s platform fails during peak hours or system downtime.

4. Access to Different Platforms or Tools

Different brokers offer different apps, reports, analytics, and IPO access.

Risks & Drawbacks of Multiple Demat Accounts

❌ Multiple AMC Charges

Each Demat account comes with its own annual maintenance cost.

❌ Portfolio Tracking Becomes Complex

You’ll need to track holdings across accounts manually or through aggregator tools.

❌ Higher Risk of Dormancy

Inactive accounts may lead to AMC deductions or SEBI freezes if KYC isn’t updated.

❌ Duplicate Holding Confusion

Having the same stock in different accounts can make asset allocation harder to analyze.

Best Practices for Managing Multiple Demat Accounts

• Use one account as primary and others for specific purposes

• Keep a record of AMC due dates and maintain activity

• Consolidate holdings annually if needed

• Use portfolio tracking apps or dashboards

• Always maintain updated KYC and nominee details

How One Solution Fits In

Opening a second Demat account with One Solution gives you:

• ₹0 account opening

• Low brokerage across all segments

• Easy share transfers from other accounts

• Clean dashboard and real-time tracking

• Dedicated support for managing multiple accounts

We even help you close or consolidate unused accounts with other brokers.

Final Thoughts

Opening multiple Demat accounts is not only legal—it can be strategic when done right. Just make sure you keep track, stay compliant, and choose reliable brokers with low costs and strong support.

Open your secondary Demat account with One Solution and optimize your investing experience.