Investors are on a roll, in India, right now. While it is mandatory to have a Demat account in India if you are a trader, investors who are investing excessively want to know if more than a single Demat account can be maintained. Typically, a trading account is linked to any Demat account, and this is, in turn, connected to a bank account.
Multiple Accounts
Briefly put, it is absolutely legal and proper to have more than one Demat account with no restrictions on the number of accounts. Nonetheless, you may think you have the top Demat account in India and the best trading account in India with low charges attached, but you should comprehend what more than one Demat account entails. As you are entitled to have several savings accounts, so you can have Demat accounts that way as well. For instance, you may open a free Demat account with your bank and another one with an ace broker, Motilal Oswal. Since every Demat account opened is mapped and aligned with your PAN Card, you can have multiple accounts linked to a single PAN Card. Therefore, all your stocks, shares, bonds securities, etc, you possess across total Demat accounts in India, are mentioned as your property in an organized manner.
The Pros and Cons of Multiple Accounts
Having learned that you can open many Demat accounts under your name, you may well go searching for the top 10 Demat accounts in India. However, before you do, you should know some information. The following will give you some idea of pros and cons of having numerous Demat accounts as well:
- If you wish to open many Demat accounts, you cannot have more than one from a given broker. You have to open different accounts with different brokers.
- You can possess just one Demat account with the best trading account in India. Furthermore, if you think you need several trading accounts, you can have a single Demat account linked with more than one trading account.
- If you have many Demat accounts, you get the advantage of using various brokers’ interfaces, enhancing your investing experience.
- Another perk you get with many Demat accounts is that you can work in a planned fashion, separating either your investments (long-term and short-term), or your traders. This aids in streamlining investments.
- The main disadvantage if you are in possession of many Demat accounts is that you have to pay several AMCs or annual maintenance charges.
- Keeping track of your total Demat accounts in India may also prove difficult. You may ‘forget’ the presence of certain securities across accounts, and this may lead to a loss of profitable trading opportunities for those securities.
- You may have more than a single Demat account, but you have to consistently use all the accounts you have. If any one account remains inactive for a period, it may get frozen.
Invest with the Best
When you open a top Demat account in India with Motilal Oswal, you may not have a need to open any other. With technology and guaranteed satisfaction, Motilal Oswal meets any investor’s complete requirements.
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