InvestorQ : Do I have really run any risk if I hold multiple demat accounts?
Anamika Sodhani made post

Do I have really run any risk if I hold multiple demat accounts?

Answer
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Niraja Mehta answered.
2 years ago


Risk of multiple demat accounts is exactly like having a single demat account. The risks are exactly the same. There are certain risks of having multiple demat accounts, which investors need to be aware of. There are statutory risks to having multiple demat accounts. If demat accounts are idle beyond a certain period, then the depository will freeze your account. Then you will not be able to transact on that Demat account unless the KYC formalities are undergone.

Secondly, if you have multiple demat accounts, ensure that all the demat accounts are properly linked to you Income Tax PAN and your Aadhar Card. Linking to Aadhar card is now compulsory. If any of your Demat account is not mapped to your PAN and your Aadhar card then the DP may be asked by the government to freeze the demat account and prevent any transactions in them.