Home/Blogs/How can a broker know if I already have a Demat account

How can a broker know if I already have a Demat account

Nowadays, having a Demat account is extremely important because it provides access to a wide range of investment opportunities. A Demat account can be used to store a wide range of investments like bonds, securities, funds, etc. Having several Demat accounts is completely legal. The market regulator SEBI permits the holding of multiple Demat accounts.

Things to know while opening more than one Demat account:

Multiple Demat or trading accounts cannot be opened with the same DP or broker.
When you open a Demat account, you must pay its Annual Maintenance Charges (AMC) as well as account opening fees.
Due to inactivity, unused Demat accounts may be frozen.
Opening more than one Demat account will not affect your other financial holdings or the security of your shares.
If you are a frequent trader or investor, having more than one Demat account can be beneficial.

How to know my Demat account number?

When you open a Demat account, then it will be assigned a unique 16-digit Demat number by the DP. This one-of-a-kind code enables you to invest and trade in the financial markets. When an investor opens a Demat account, the depository, such as the Central Depository Services Limited (CDSL) or the National Securities Depository Limited (NSDL), will send him or her a welcome letter (NSDL). This letter will include all account details, including the Demat account information. The BOID is also known as the Demat account number.

And with the help of the letter, you will be able to know your Demat account number.

Concluding comments:

It is completely safe to maintain multiple accounts with different brokers because they have no control over the holdings in the Demat Accounts.

A Demat account allows an investor to choose a secure trading platform for equities and diversify his investment portfolio.

One of the most important aspects of the Demat account framework is the Demat Account Number. It enables the depository participant to easily identify and manage unique clients and portfolios. It also allows the investor to keep track of all of his Demat accounts, whether they are with the same or different depository participants. The unique client ID is also used as a login ID for online transactions, increasing an investor's trading security.

Now, with an online platform like Motilal Oswal, opening a Demat account has become very easy because they offer hassle-free services.