Yes, it is legal to open multiple demat accounts. As per the law, there are no restrictions regarding the number of demat accounts that can be opened by you. However, while opening multiple demat accounts, there are a few things that you must know.
Things to Keep In Mind While Opening Multiple Demat Accounts
Before opening more than one demat account, you must know that you cannot have multiple demat accounts with the same broker or depository participant (DP). Hence, if you currently have a demat account with a stock broker, you cannot open another account with the same broker.
You have to pay annual maintenance charges (AMC) for every demat account you open. The charges vary from one broker to another. These charges are required to be paid irrespective of the fact that you carry out any transaction in them or not. The charges range betweenRs. 700 to Rs. 1,000 annually.
If you are a trader as well as an investor, multiple demat accounts can be helpful to you. With multiple trading and demat accounts, you can easily segregate your trading and investment portfolio.Stock Broker
Every broker provides different services that vary from other brokers. By opening multiple demat accounts, you can avail of these services and get access to various products offered by these brokers.