How many demat accounts can be opened?

Demat account allows an investor to trade online and hold shares, mutual funds, etc. in electronic format.

An individual or any other entity can open as many as demat accounts they want on their name. There is no limit on the number of accounts held by an individual or an entity like HUF, LLP, Pvt Ltd Company and trust.

But one broker (depository participant) usually allows only 1 demat account per person.

Thus, an individual can open 2 demat accounts with 2 different brokers.

Note that multiple demat accounts should be only opened in case it is really required.

Each demat account has an annual maintenance cost (AMC) which ranges between Rs 600 to Rs 1200 per year.

More demat accounts are difficult to handle and monitor. As a limited power of attorney of demat account is given to the stockbroker for online trading, it raises the risk of misuse (intentional or accidental) of your demat account.