Multiple demat and trading accounts are completely legal. There is, however, a condition tied to it. With the same Depository Participant (DP) or broker, you cannot have numerous demat accounts or trading accounts.
You do not need a Demat Account if you merely want to trade futures and options. A Demat Account is sufficient if you have applied for an Initial Public Offering (IPO) and only wish to keep the shares. However, if you wish to sell these shares, you'll need to open a trading account.
A trader can have many trading and demat accounts. In this circumstance, there is only one restriction: you cannot open several demat and trading accounts with the same stockbroker or depository participant. With one stockbroker, you can only have one demat and trading account.
SEBI will soon allow you to invest directly in the BSE and NSE without the use of a broker. The Indian online trading market has grown rapidly, according to a research published by HDFC Securities in March 2019. The percentage of traded shares increased from 22% in FY13 to 29% in FY18.
A demat account maintains shares and securities (bonds, ETFs, mutual fund units, and so on) in digital form, whereas a trading account provides an interface to buy and sell shares in the stock market.
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