InvestorQ : Can I have multiple demat accounts with the same broker?
Arya Nanda made post

Can I have multiple demat accounts with the same broker?

Answer
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2 years ago


Most of us understand the basic difference between a trading account and a demat account. A trading account with a broker is where the actual trades in equity and F&O are executed. F&O trades and intraday trades are settled in the trading account itself. When you take delivery of equities, the shares are credited to your demat account. Similarly, when you sell shares, they get debited to your demat account. The demat account is to been seen in the same light as a bank account. Just as a bank account is a repository of your cash balances, the demat account is a repository of your balance of shares and other securities. A demat account is opened with your depository participants and normally it is the broker who also doubles up as a DP, at least that is the reality in most cases.
But there are some questions that pertain to your demat account. How many demat accounts can one person have in India? Is it possible to have one demat account and multiple trading accounts linked to it? How does a demat account operate? Are shares safe in a demat account, since there is nothing physical? The question, “Can I have multiple demat accounts” has a very simple answer, “Yes”. Let us answers these questions and throw some more light on the nuances of your demat account. You can have multiple demat accounts either with the same DP or with different DPs. There is nothing that prevents you from having multiple demat accounts. You can choose to have multiple demat accounts to separate your investment portfolio and trading portfolio. Choice is yours. Only take care of the costs.