Absolutely, you can open two or more demat accounts with one single bank account. You can, later on, add other bank accounts to your demat account as per your requirements.
Can you have 2 demat accounts?
In short, Yes. You can have 2 or more demat accounts as it is perfectly legal to have multiple demat accounts. Now the question arises can I use the same bank account for 2 or more demat accounts.
Can you use 1 bank account for 2 or more Demat accounts?
Using a single bank account for multiple demat accounts is absolutely fine. You can link your same bank account to two or more demat accounts without any problem. As per the SEBI (Securities Exchange Board of India), one individual can open only one account with one stockbroker. This means you cannot open two demat accounts with one single stockbroker.
Some other rules to adhere to while opening a Demat account
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As per the market regulator SEBI, you cannot open more than one demat account with one DP (Depository Participant).
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You will have to provide your PAN Card, at the time of account opening. It is a mandatory document required to open a demat account.
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Apart from this, you can provide the same mobile number for different demat accounts provided it is linked with your Aadhaar and Pan card.
Some added advantages of having the same bank account for different demat accounts.
Having one bank account for 2 or more demat accounts makes the job of adding or withdrawing money from the account easy.
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You can easily add money to your demat account seamlessly with your primary bank account.
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The tracking of funds becomes easier. With a single bank account, it is easy to manage the dividends and the interest received and paid. You don’t have to go through multiple accounts in order to maintain a record of the receipts.
Having 2 demat accounts with one PAN is like having 2 bank accounts. Obviously, one PAN means they have to be linked together. There is no limit on the number of demat accounts you can have.
For example: ICICI Bank allows you to open multiple demat accounts that are linked to a single bank account. The only condition is that your accounts must be linked. Whatever you buy or sell will be through that one
Don’t be confused with banks and brokers in this regard. Because you cannot have more than one account with one stock broker!
However, you can add up to 5 bank account to your demat account for pay in and payouts. The primary account linked with your demat will be used to deposit all your dividends payouts.