One can open multiple demat accounts with one PAN card. However, you are not allowed to open more than one demat account with the same broker or Depository Participant (DP), so you must look for a different broker to open another account.
What is a demat account?
A demat account, also known as a dematerialized account, enables investors to hold shares and securities in an electronic format. It is beneficial to maintain accurate records of all investments a person makes in bonds, mutual funds, ETFs, and shares.
Steps to Open a Demat Account
- Open the app or go to the broker’s website.
- Select the “sign up” button.
- Enter your mobile number.
- Enter the OTP received on your mobile phone.
- In order to complete the process, you must enter your information, PAN, and bank account.
- E-sign the form through an Aadhar-linked mobile number.
- After verification, you will receive confirmation regarding your account opening.
These are the general steps for opening a demat account. The exact steps will vary depending on the broker, but there is one thing that all brokers agree on: you must have a PAN card in order to open a demat account. If you don’t have a PAN card, you can’t open a demat account.
What is a PAN card, and why is it required to open a demat account?
Every citizen of India has a distinct Permanent Account Number (PAN), which is given by the government. The PAN makes it possible for regulatory agencies to identify the financial investments made by investors to prevent tax evasion.
To ensure that your investments can be tracked and taxed appropriately, SEBI has made it mandatory to link your Demat Account with your PAN Card.
How many Demat accounts one person can open with one PAN card?
Yes, you can open more than one demat account using a single PAN card. There is no restriction on the number of demat accounts a person can open.
However, you cannot open more than one demat account with the same stock broker in India. You must find a different broker because each depository organization/bank/institution is only allowed to have one demat account.
Are you thinking of opening multiple Demat accounts?
Opening more than one demat account will result in additional fees, such as maintenance fees. Managing multiple demat accounts as well as your investments will also be challenging. So, do analyze all the pros and cons of maintaining more than one demat accounts before you actually open them.