Can I own more than one demat and trading account?
To answer this question, first, one needs to know the basic difference between a demat and trading account. A demat account is an account which is used to keep your shares in an electronic format. A trading account is an online account which can be used to place your trades over the exchange.
In India, there is no restriction to the number of trading accounts or demat accounts that one person can hold. You can open as many trading accounts as you wish and the same is the case with demat accounts. However you need to link every trading account with a demat account if you actually wish to use it to trade.
There are however, some cons in having multiple accounts. Most brokers charge an annual maintenance fee for a demat account. If you have multiple demat accounts you have to pay the annual maintenance fees for each of those demat accounts. Some brokers like Upstox offer you a free demat account with no maintenance fees, in which case it doesn’t matter.
The other issue can be to maintain these multiple accounts. Too many accounts can be confusing. It is always advised that you maintain proper records of any account that you open.
You can read more about opening a new demat & trading account in our linked article.