Can You Open 2 Demat Accounts With One Pan Card In India

A Demat account is like a regular bank account that enables you to trade in the stock market products. It is a mandatory platform for all stock market transactions. This account enables a more smooth and transparent trading experience than the earlier manual trading methods. 


Various brokers exist in the market who can provide their platform (both online and manual) to open a Demat account on their website or online trading app. You can open this account by filling out the specific forms on your selected broker’s portal and providing KYC documents for identity, address, and income proofs. PAN and Aadhaar are the most commonly-used documents.


When you start investing and feel the need to expand, you may come across a question: Can you open multiple Demat accounts?


The answer is yes. You can open multiple accounts with multiple brokers, however, only one account can be opened on one stockbroking platform.


Need and Benefits of multiple accounts:


  • Segregating the portfolio
  • Taking advantage of advanced technology
  • Getting the best analysis on investments from diversified platforms
  • Best advice for investments on different platforms
  • Cost-benefit from other broker portals
  • Central linkage helps maintain records more efficiently


Opening multiple accounts with the same PAN:


While opening multiple accounts is legally valid under different broker platforms, you may want to know if it is also valid to open 2 accounts with the same PAN. The answer again is yes! As you would open any other savings bank account using the same PAN, likewise, the Securities and Exchange Board of India (SEBI) allows opening a Demat account with the same PAN.


PAN is centrally managed by the governmental authorities, which helps them track a person’s financial standing. PAN provides information about tax liabilities, income and investments done, and other major financial transactions made by the individual. Hence, it is mandatory to link PAN with Demat accounts.


Things to look for:


  1. If the account is being opened in a minor’s name, the PAN of the guardian/parent is linked to the account.
  2. The correct PAN should be linked to each account, as this is unique to every individual.
  3. While opening multiple accounts is simple, maintaining them is equally important. In the case of dormancy, the specific account may freeze, and a penalty may be added. The authorities may take other financial actions too as PAN is linked to this account.
  4. Read all documents carefully before opening the account and linking the PAN. It directly gets linked to a central portal which is also accessed by financial authorities. Hence, any fault can lead to severe consequences.
  5. With each new account, additional costs should be factored in.


There is no limit to the number of accounts you can open with a single PAN. However, as the accounts are required with different brokers on separate portals, it may become cumbersome and add to the cost of managing too many accounts. Legally, there is no binding from SEBI on opening multiple accounts.