More Than one demat account: What legal action can be taken if there is more than one demat account. Read in this news what are the advantages and disadvantages of having more than one demat account.
Nomination form has to be filled. If this is not done, then the sale of shares from the demat account will be stopped. If this nomination or declaration is not to be given, then for this also you will have to fill a separate form. This form will have to be filled when new accounts are opened from October 1.
Let us tell you that if you want to invest money in the stock market, then you must have a demat and trading account. Without this, you can invest in mutual funds but cannot invest money in the market. Now the question arises whether one can have more than one demat account. The answer is – yes. One can hold his holdings or shares in more than one demat account.
By doing so, no legal action will be taken against you. Just like you have multiple savings accounts, you can have more than one demat account. The thing to keep in mind here is that you can open more than one demat account but cannot open in the same depository or bank. Let us know what can be the advantages and disadvantages of having more than one demat account…
Benefits of having more than one demat account
There is no significant advantage of having more than one demat account. Yes, different brokerage houses may have different facilities. Apart from this, you can track your long and short term investments separately. This will not cause confusion and you will be very cautious about buying and selling of shares. If you are an active trader then you will find it easier to have more than one demat account.
Disadvantages of having more than one demat
- Maintenance charges are high due to having a demat account with different brokerage houses or depositories
- If you do not track all the demat accounts in time, then there will be a problem in tracking the stock.
- If you have not logged in to any one demat account for a long time, then your account may also get frozen.
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