How many Trading accounts one person can open with one PAN card in India?
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- Updated On:21-Sep-2022
- Replies:1
Short Answer
One person can open multiple trading accounts with one PAN card in India. But you cannot open more than one trading account with the same broker using the same PAN card.
Detailed Answer
What is a trading account ?
A trading account is used for buying and selling stocks without going physically into the stock market. Trading accounts have replaced the previous practice of brokers, who used to buy and sell stocks and other securities on behalf of clients.
A trading account is opened under a unique trading number and acts as an interface between the investor's bank account and the demat account.
How are trading accounts different from demat accounts?
A trading account provides the interface for buying and selling shares and other securities, whereas a demat account stores the shares and securities electronically in one of the depositories.
Therefore, all transactions are carried out through a trading account. The funds in your trading account are used to buy and sell stocks, and the latter are then stored in your demat account.
Steps to Open a Trading Account in India
- Choose a stock broker after doing thorough research.
- Select the option of opening a trading account.
- Complete the registration form by submitting supporting documentation, such as personal information, an address proof, and bank information.
- Complete the KYC (Know Your Customer) through PAN card.
- Your account will be ready after verification.
However, all discount brokers don't give you the option to open just a trading account. To open a trading account, you must first open a demat account; once you do, your trading account will be opened automatically.
How many Trading accounts one person can open with one PAN card in India?
One can open multiple trading accounts with one PAN card and with different brokers in India.
But, it is not possible to open more than one trading account with the same broker using a single PAN card. Even if a person has joint and individual demat accounts with the same PAN card and the same broker, in that case, the trading account will still be automatically linked to an individual demat account by default.
Trading accounts with one PAN card in India
There is no restriction on opening multiple demat accounts with the same card, but for that, you will have to open it with different Indian stock brokers and not with the same broker.
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Discussion (0)
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