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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Opening

A client who already holds a demat account with one DP wants another demat account with a different DP. What is the position?

An investor may hold multiple demat accounts, with the same DP, different DPs, or both depositories, as long as KYC is completed for each. There is no one-account limit and no depository approval is required.

  1. ANot permitted; one demat account per investor
  2. BPermitted only with prior depository approval
  3. CPermitted with the same DP only
  4. DPermitted; an investor can open multiple demat accounts with the same or different DPs, and even with different depositoriesCorrect

Explanation

There is no restriction on the number of demat accounts an investor may hold, whether with the same DP, different DPs or both depositories, provided KYC is complete for each. No depository approval is needed.

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