Winning Bizness Desk
Mumbai. Amidst the much fanfare in the stock market, more than 42 lakh new demat accounts were opened in the month of June. According to Central Depository Services (CDSL) and National Securities Depositories (NSDL) data, this is the highest level in four months. Due to this, the total number of demat accounts has now increased to more than 16.2 crores. This is 4.24% more than last month and 34.66% more than June 2023. Four months ago, 43 lakh demat accounts were opened in February while 31.30 lakh demat accounts were opened in March, 31 lakh in April and 36 lakh in May this year. At the same time, 23.6 lakh demat accounts were opened in June 2023 last year. For the fourth time, the number of new demat accounts has crossed 40 lakhs. Before June, more than 40 lakh demat accounts were opened in December 2023, January 2024 and February 2024. Analysts say that the market is stable and the formation of a new government has created confidence in its continuity. This stability attracts investors to the equity markets. Anyone above the age of 18 can open a demat and trading account digitally. For this, PAN, bank account, proof of identity and address are required.
What is a Demat Account?
Demat account means dematerialization account. It is just like a bank account, in which you keep share certificates and other securities in electronic form. It makes the process of keeping investments like shares, bonds, government securities, mutual funds, insurance and exchange traded funds (ETFs) easier. Opening multiple demat accounts is legal, however, opening multiple demat accounts with the same brokerage firm is not allowed. One can open multiple demat accounts simultaneously with full-time brokers and discount brokers. A person is allowed to hold one PAN card, they can open two or more demat accounts using the same PAN card. All securities you buy and sell will be linked to your PAN card. There are several advantages and disadvantages of holding multiple demat accounts. There is no limit on the value of investments held in a demat account. You can hold securities of any value in a demat account. You must reconcile all transactions taking place in your demat account with your trading activity and report any discrepancy to the depository immediately.
