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Is it Okay to Open Multiple Demat Accounts in India?

Is it okay to open multiple demat accounts in India?

Hi. Welcome to the day 6 on my ’30 days, 30 posts’ challenge, where I’ll be writing one interesting investing article daily for the next 30 days.

In the last few days, I received multiple emails to cover this topic- “Can I open multiple demat accounts in India?”. Therefore, I decided to write a blog post on this query.

Is it Okay to Open Multiple Demat Accounts in India?

The Simple Answer-

Yes, it is okay to have multiple demat accounts in India. You won’t face any legal problems. A person can open as many demat accounts as he/she wants.

Why there won’t be any problem while opening multiple demat accounts?

Each person is mapped with one PAN Card. Obviously, you cannot have multiple PAN Cards as it is unique for every person. Therefore, as long as your PAN Card is correctly connected with your demat account, all the equities that you buy will be mentioned as your property.

A person can open multiple demat accounts using the same PAN Card.

Quick Note: You have to open multiple demat accounts from different brokers. But, you cannot open two demat accounts with the same broker.

Also read: How to Invest in Share Market? A Beginner’s guide

Can you open multiple ‘Trading’ accounts with the same demat account?

Yes, it is possible.

You can open one demat account and link it with multiple trading accounts. For example- You can open one demat account at HDFC Sec and link it with different trading accounts like Zerodha, ICICI Sec, Motilal Oswal etc.

Here are few other points that you should also know-

If you want to enjoy the facilities of both discount and full-service broker at the same time– you can open multiple trading accounts with different brokers mapped to a single demat account.
Not all brokers allow opening only the trading account. For few, you have to open both demat and trading account at the same firm.

Pros and Cons of having Multiple demat accounts-

Although there isn’t any problem with opening multiple demat accounts, however, there are few significant advantages and disadvantages of doing so.

Advantages of having multiple demat accounts—

Frankly speaking, there are not many advantages to having multiple demat accounts.

The only advantage worth mentioning is that you can segregate your long-term investments and short-term/frequent trading in different accounts. For example- You can keep the stocks that you’ve purchased with a long-term vision in one demat account and your stocks with short-term aims in another account. This will help you to avoid confusions and bring discipline in your investment.

Disadvantages of having multiple demat accounts—

Having multiple demat accounts has more disadvantages compared to advantages. Few major ones are-

1. You have to pay Annual Maintenance Charges (AMC) for the multiple accounts:

There’s no free lunch in this world. If you’re having a demat account with a broker, you have to pay the annual maintenance charge. This amount will vary depending on your broker, but almost every broker charges AMC. Therefore, if you have multiple demat accounts, then get ready for paying multiple AMCs.

For example- If you have a demat account with ICICI direct (AMC= Rs 600) and another with Share Khan (AMC= Rs 441), then you’ve to pay an annual AMCs on both (total of Rs 1041 per year).

2. It is difficult to keep track of multiple demat accounts:

Let’s assume that you’ve 10 stocks in your first demat account and 8 in another, then it might be little difficult to continuously track both accounts.

3. Sometimes your account can also get freezed if you remain inactive for a specific long period of time:

Yes, it’s true. Many people forget the credentials (login and password) of their accounts when they are using multiple demat accounts. Moreover, they don’t even care to contact the customer care of that broker anymore.

Obviously, you’ll receive multiple notifications and alert from your broker before freezing your account. But if you remain inactive for a very long period of time, then they might freeze your account. And your stocks along with it (Relax your demat shares are with NSDL or CSDL and can be recovered). Still, to avoid any inconvenience, you should remain active on your accounts periodically.

Quick Explanation: The demat account is opened with your depository participant (DP) (i.e. your broker like HDFC Sec, ICICI direct etc), however, the shares actually remain in the custody of the depositories (CDSL or NSDL). When you open your account, you specify whether you’re opening your account with CDSL or NSDL. Therefore, even if your account gets freezed or your broker gets bankrupted, you can recover the stocks from the depository.

Also read: How to find the best stockbroker that suits your needs and get started in the Indian stock market?

Bottomline

The straight answer to the question- ‘Is it okay to have multiple demat accounts in India?’ is YES! It is okay to have multiple demat accounts in India. However, before opening your second or third demat account, please reconsider about the advantages and disadvantages of having multiple accounts.

Kritesh Abhishek

Hi, I am Kritesh, an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting

https://www.linkedin.com/in/kriteshrules/

July 15, 2018 Kritesh Abhishek Investment Basics, Uncategorized 3 comments

30 days, 30 Posts Challenge -Let the learning begin.

Hi,

This is Kritesh. I hope you are doing well.

I’m writing this short post to announce that I’ll be doing a ’30 days, 30 posts’ challenge which starts today. This means that I’ll write one interesting investing article every day for the next 30 days. The blog posts will be published between 10 AM to 11 AM (IST) daily.

I’ve made a small list of topics that I’ll cover in this challenge. Nevertheless, I would love to hear your suggestions, and I will do my best to include as many of the topics you propose in a blog post or maybe even a short video. I may not be able to get to all of them, but I’ll do my best.

You can send your suggestions by simply commenting on this blog post. Else, if you’re using our mobile app, you can directly send a topic request from the app.

(Quick note: You can stay updated with the Trade Brains’ upcoming articles by downloading our learning app where you’ll receive daily notification of every new post. Here’s the link to download Trade Brains’ android app.)

I’m excited about this challenge and firmly believe that it will be beneficial to all our blog readers. Thanks again for your support, and I hope to hear from you soon.

Let the learning begin.

Thanks and regards,
Kritesh Abhishek
Founder, Trade Brains.

P.S. I know that many of you might be thinking that shouldn’t a 30-days challenge start on the first day of a month or at least Monday… Well, sometimes you got to do what you got to do. Anyways, new year or new month resolution don’t work, do they? Awaiting your reply. Cheers!!

Kritesh Abhishek

https://www.linkedin.com/in/kriteshrules/

July 10, 2018 Kritesh Abhishek Uncategorized 6 comments

Invest Like a Legend: Dolly Khanna Success Story [Portfolio, Bio & More…]

Dolly Khanna Success Story:

Every market produces players- those who churn one multi-baggers after another. Dolly Khanna, although the name may not be quite well known as of Rakesh Jhunjhunwala, but she is doing quite well off. Her portfolio was quite a mystery for a long time! She has not been interviewed or known before until she bought 1% stake in a company and Indian law makes it compulsory to disclose it to the exchange. Her stake is more than 1% of 14 listed companies now.

Dolly Khanna, the name we hear along with Rajiv Khanna. The couple is based on Chennai. Rajiv Khanna has graduated as a chemical engineer from prestigious IIT Madras. During their initial days, they raised capital from the sale of family business named ‘Kwality Milk foods’ to Hindustan Unilever in 1995. Since then the golden couple has not looked back. She is into the stock market since 1996 and her portfolio is managed by her husband Rajiv Khanna. Rajiv Khanna is widely known as a brain behind Dolly Khanna’s holdings in the equity market. Her holdings range from the plastic company to the pressure cooker manufacturer.

What makes it interesting is that her stock picks perpetually becomes mega multi-baggers. The couple is quite accurate and expert in picking small potential businesses. Khanna’s are named among the top individual players of the Dalal Street. In 2014, she picked up Nilkamal (India’s top manufacturer of Home and office furniture), the stock which surprisingly has gone up 900% (from Rs 197.30 on March’14 to Rs 1966 as of March’17) in past 3 years, nearly 10 times.

Their first multi-bagger in their portfolio was Hawkins Cookers. They kept buying stocks till June’09 at the price of 130-140. Today is stock is worth Rs 3400 and also the company has given 70% of its profit as dividends.

Avanti Feeds, Nilkamal, Rain Industry, Emkay Global, NOCIL, PPAP Auto, Sterling Tools, Thirumalai Chemicals, Asian Granito are the few examples of her stocks that went to become multi-baggers once she added them to her portfolio.

Here is the partial portfolio of Dolly Khanna as of December 2017.

Stock Name	CMP (Rs)	% Change	P/E Ratio	Nos of shares	Value of portfolio	% of Portfolio
Rain Industries	386.3	-1.15	19.09	86,30,115	₹ 3,33,38,13,425	38.77%
Manappuram Finance	104.85	-2.74	12.83	95,29,586	₹ 99,91,77,092	11.62%
NOCIL	203.1	0.4	48.09	32,16,039	₹ 65,31,77,521	7.60%
Thirumalai Chemicals	1910	2.37	13.12	1,67,221	₹ 31,93,92,110	3.71%
Srikalahasthi Pipes	337.9	-1.72	9.33	6,36,923	₹ 21,52,16,282	2.50%

(Source: Rakesh-Jhunjhunwala.in)

Rain Industry is the prime target of her investment followed by Manappuram Finance, NOCIL, Thirumalai Chemicals and many more. Her another interesting investment is in Trident where she holds 1.03% of the stake as of Dec’16. Since her investment, the price has risen up to 82.25 as of March’17 form 57.55 on Dec’16, giving 42.92% return, She recently bought a lot of shares of Butterfly Gandhimathi, which is also favorite of Ashish Kacholia. But her main target is Rain Industries where she bought 1.27% of the equity in June’17 and increased it up to 2.57% of equity until December’17.

Nevertheless, if the couple sells some stock, then it doesn’t always mean that they have lost their confidence in the company. It’s just that they might have found something else that’s worth more investing. Avanti Feeds is such example where she sold many of them even at low price and price went even high after the sell-off. Though Avanti had given her a fair amount of gain even at that stage.

The above stocks (along with some others) make up around INR 1 billion. as a net worth. Also, there are few stocks which are not yet disclosed to stock exchange as they are below the statutory limit for reporting. So, the aggregate will definitely roar above INR 1 billion!

During a seminar, Rajiv Khanna said,

“Investors have to move beyond value investing and look at growth stocks if they want to find multi-baggers for their portfolio.”

Generally, the couple is a believer in long-term investment, but sometimes they also sell off the stock if it’s giving them a pretty sum of returns at that stage. Rajiv Khanna says that he relies on public information to make his investment, unlike some market analyst who bothers themselves talking to management of companies.

So how do they decide? Here are his words :

“Like in tennis you play different games on different courts – hard court, clay court and lawn, we also study the market situation and pick our stocks accordingly. It can be either a value stock, growth stock, momentum stock or buying based on technicals”

Also read: D-Mart Founder- RK Damani Success Story [Bio, Facts, Net worth & More]

Kritesh Abhishek

https://www.linkedin.com/in/kriteshrules/

March 16, 2018 Kritesh Abhishek INDIAN BULLS, Uncategorized No comments yet

How to find complete list of stocks listed in the Indian stock market?

How to find complete list of stocks listed in the Indian stock market?

There are over 5,500 stocks listed on Indian stock market. It’s really tough to study each one of them individually. Wouldn’t it be easier if you can find an excel sheet with the complete list of stocks listed in Indian stock market and categorized by their industry?

Well, you can download one. It’s pretty simple indeed. Moreover, you can download the complete list of stocks within 2 minutes.

In this post, I’m going to explain how to find the complete list of stocks listed in the Indian stock market in an easy way.

Further, there’s also a bonus in the last section of this post. So make sure that you read this post until the very end so that you do not miss it. Let’s get started.

1. How to download complete list of companies listed on BSE?

You can download the complete list of stocks listed on the Bombay stock exchange from it’s official website- BSE India http://www.bseindia.com.

All the listed companies on BSE are shown on its website.

Here’s how you can download the complete list of stocks listed on the Bombay stock exchange:

1. Search ‘BSE list of companies’ on google and click on the first link with title ‘LISTED COMPANIES | LIST OF SECURITY | BSE’

Here is the quick link: http://www.bseindia.com/corporates/List_Scrips.aspx

2. Here is the BSE India page for the list of securities. On this page, select ‘equity’ in the segment and ‘active’ as status.

Segment —> ‘equity’

Status —> ‘Active’

Active status shows the list of companies which are active in the market. Further, do not change rest of the options. Finally, click ‘submit’.

You can download the excel sheet of the complete list of stocks by clicking on the ‘excel’ link on the right corner as shown below.

3. The excel sheet will be downloaded by clicking on the link as shown above.

Here is the excel/google sheet. I’ve already downloaded it–> BSE list of companies

Note: The above excel sheet will contain a column of ‘GROUP’ with types A, B, T, XT, P etc. These are the group types of different companies as per BSE. You can read more about it here.

That’s all. This is how simple it is to download the complete list of stocks listed on Bombay stock exchange (BSE).

Also read: 7 Must Know Websites for Indian Stock Market Investors.

2. How to download the complete list of stocks listed on NSE?

You can download the complete list of companies listed on National stock exchange using the official website of NSE- https://www.nseindia.com/

Here is exactly how you can download the complete list of companies listed on NSE:.

1. Search ‘NSE security info’ on google and click on the first link with the title ‘Securities information -NSE- National stock exchange of India Ltd’.

Here is the quick link: https://www.nseindia.com/corporates/content/securities_info.htm

2. Open the link. Next, click on ‘Securities available for equity segment (.csv)‘ to download the complete list.

3. A CSV file will be downloaded by clicking on the link.

I have already downloaded the file which you can find here –> NSE list of companies

This is exactly how you can download the complete list of companies listed on the national stock exchange.

BONUS SECTION:

You can also get the complete list of stocks listed in the Indian stock market using INVESTING website.

Here is how you can get the list of companies:

1. Go to the Investing website. Here is the link: https://in.investing.com

2. Select ‘TOOLS’ on the menu bar and click on ‘stock screener’.

3. Select the exchange (NSE or BSE) to get the list of the companies on either of the exchange. Select ‘All exchange’ if you want the complete list of both the exchanges.

4. Further, you can also apply different filters to select stocks based on different criteria like price, market capitalization, ratios etc on investing website.

This is how you use INVESTING website to get the list of the companies trading on BSE or NSE.

Conclusion:

You can easily download the complete list of the companies listed on Indian stock exchange using the official website of BSE & NSE. You can also get the same data using INVESTING website.

In addition, there are few other websites also like Money control, screener etc where you can find the complete list of stocks listed in the Indian stock market.

However, the easiest place to find the complete list is described in this post.

That’s all. I hope this post is useful to the readers. If you have any question, feel free to comment below.

New to stock market? Join our 7-day free eCourse on HOW TO INVEST IN INDIAN SHARE MARKET here. The lessons will be delivered directly in your email. Happy Investing

Footnotes:

NSE: https://www.nseindia.com/corporates/content/securities_info.htm

BSE: http://www.bseindia.com/corporates/List_Scrips.aspx

BSE Groups: http://www.bseindia.com/markets/equity/EQReports/tra_trading.aspx

INVESTING: https://in.investing.com

Moneycontrol: http://www.moneycontrol.com

Screener: https://www.screener.in

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Kritesh Abhishek

https://www.linkedin.com/in/kriteshrules/

December 11, 2017 Kritesh Abhishek Investment Basics, Stocks, Uncategorized 5 comments

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Is it Okay to Open Multiple Demat Accounts in India?

Is it Okay to Open Multiple Demat Accounts in India?

The Simple Answer-

Why there won’t be any problem while opening multiple demat accounts?

Can you open multiple ‘Trading’ accounts with the same demat account?

Pros and Cons of having Multiple demat accounts-

Advantages of having multiple demat accounts—

Disadvantages of having multiple demat accounts—

1. You have to pay Annual Maintenance Charges (AMC) for the multiple accounts:

2. It is difficult to keep track of multiple demat accounts:

3. Sometimes your account can also get freezed if you remain inactive for a specific long period of time:

Bottomline

30 days, 30 Posts Challenge -Let the learning begin.

Invest Like a Legend: Dolly Khanna Success Story [Portfolio, Bio & More…]

Here is the partial portfolio of Dolly Khanna as of December 2017.

Also read: D-Mart Founder- RK Damani Success Story [Bio, Facts, Net worth & More]

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