Demat account opening has never been so simple. This article seeks to explain the number of Demat accounts possible with one PAN card.
Depository or Demat accounts entitle accountholders to store their stocks and investments and allow for sell or hold decisions to be taken online in addition to allowing for more stocks to be bought. Demat accounts allow for trading on the stock markets to be done with ease. Today, it is possible to open a demat account online in no time. Demat accounts allow for their account holders to be located anywhere in the world should they like to access their account or make buy, hold or sell decisions provided they have access to a stable internet connection. Moreover, they render the possession of physical certificates indicative of ownership of a given security no longer necessary.
As per the Securities and Exchange Board of India (or SEBI), Indians are entitled to open two Demat accounts or more provided they are each linked with the same Permanent Account Number (or PAN). This PAN has been allocated to each citizen of the country by the Government of India. It allows for those in charge of regulations to determine financial investments and tax liabilities made by varied investors.
Account holders are requested to bear in mind the following prior to opening an additional Demat account.
1. PAN linkage is a legal requirement for each Demat account created.
2. Regardless of securities bought on varied Demat accounts, they are each associated with the single PAN provided.
3. Only one Demat account is permissible per depository organization / bank / institution.
4. Demat accounts can be opened with a joint name if need be.
Demat accounts allow for trading and investing to occur seamlessly. Taking charge of physical share certificates and looking after them is no longer a requirement. Investments can be monitored online which means they can be checked anywhere in the world provided there is access to the internet. Open a Demat account today such that you too can avail of the benefits investing and trading online allow.
It is important to do due diligence prior to making any buy, sell or hold decisions pertaining to securities you might have your eye on. This preliminary research can reduce the potential of your incurring any risks and / or losses and can potentially allow you to accrue greater returns. Now that you have a better understanding of how many Demat accounts you are permitted to make with one PAN card, you can look at market conditions, your financial goals and assess your risk tolerance prior to attempting to invest or trade on the stock markets.
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