InvestorQ : Can I have multiple demat and multiple trading accounts?
Deepa Salunkhe made post

Can I have multiple demat and multiple trading accounts?

Answer
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2 years ago


While your demat account is opened with your DP, these shares actually remain in the custody of the Depositories. When you open your demat account, you specify whether your account is with CDSL or with NSDL. These are the depositories who hold your shares in custody and not your broker who normally acts as the depository participant. These are backed by the stock exchanges and by government institutions.
It is perfectly legitimate to have multiple demat accounts just as you can have multiple trading accounts. The only condition is that you do the complete and comprehensive KYC formalities for any number of accounts that you hold. You can map a single trading account to multiple demat accounts and you can also map a single demat account to multiple trading accounts. The only requirement is that the name / order of names should match in both the cases. You cannot map your individual trading account with joint DP account. Similarly, you cannot map an individual trading account with a corporate DP account in which you are the director.