Multiple demat accounts are allowed under one PAN. You can hold several as long as each one is with a different Depository Participant (DP). For example, one with a discount broker and another with your bank.
All of them are linked to your PAN, so your investments across accounts can be tracked together. Your CAS from NSDL or CDSL will show holdings from every account in one statement.
Why do people open more than one?
- To use one broker’s app for trading and another for long-term holdings
- To keep investments for different goals separate
- As a backup if one broker’s platform has an outage on a busy day
The downside is cost and clutter. Each demat account usually has its own annual maintenance charge. Someone with three accounts might be paying three AMCs for holdings that could easily sit in one. Dormant accounts also get forgotten, which makes them a security risk.
Tax-wise, having multiple accounts doesn’t change anything. All your gains are reported under one PAN.
A practical rule we share with students: start with one account, learn it well, and add a second only when you have a clear reason.
Choosing a broker and setting up accounts properly is part of our Diploma in Stock Market.