To enter the stock market, choosing the best trading platform plays a major role. There are many traditional and discount stock brokers, such as Zerodha and Upstox. Before opening an account, it is essential to understand the terms, conditions, advantages, and disadvantages.

This page guides you through all queries related to KYC and account opening, helping you make an informed decision.

1. My KYC is already registered. Can I open an online Demat account without paperwork?

A:Yes, if your KYC (Know Your Customer) is already registered with a KRA (KYC Registration Agency) like CVL, NSDL, CDSL, CAMS, or Karvy, you can open a Demat account online without physical paperwork. Most brokers offer e-KYC verification using Aadhaar-based OTP authentication. Ensure your mobile number is linked to Aadhaar for a seamless process.

2.My name is different on PAN and Aadhaar. Can I open a Demat or bank account? Is it important for my name to be the same on PAN, Bank, Aadhaar, Income Tax, and Passport?

A:Yes, having the same name across all documents (PAN, Aadhaar, Bank Account, Income Tax, and Passport) is important for seamless financial transactions, KYC verification, and regulatory compliance. If there is a mismatch:

  1. Bank & Demat Account Opening:

    • Most banks and brokers require name consistency for KYC verification.

    • Minor spelling errors may be accepted with a declaration or supporting documents.

    • Significant differences will require name correction in either PAN or Aadhaar.

  2. Income Tax Filing:

    • The PAN name must match Aadhaar for income tax returns and e-verification.

    • If there's a mismatch, you may face issues in tax filing, refunds, or linking PAN-Aadhaar.

  3. Passport & International Transactions:

    • Name discrepancies may lead to visa rejections and delays in forex transactions.

3. Why is KYC required for opening a Demat Account?
A: KYC (Know Your Customer) is mandatory to verify the identity of the investor, prevent fraud, and comply with SEBI regulations.

4. Can NRIs open a Demat Account?
A: Yes, NRIs can open a NRI Demat Account (NRE/NRO) with RBI approval.

5. Can I open a Demat Account without KYC?
A: No, KYC verification is compulsory before opening a Demat account.

6.What happens if I don’t use my Demat Account?
A: If inactive for 1+ year, your account may become dormant, requiring KYC reactivation. AMC charges may still apply.

7.Can someone misuse my Demat Account?
A: Only if you share login details or Power of Attorney (PoA). Always use TOTP (Time-based OTP) security.

8. What happens if my broker shuts down?
A: Your securities remain safe with NSDL/CDSL and can be transferred to another broker.

9.Can my broker sell my shares without permission?
A: No, unless you give Power of Attorney (PoA) for auto-sell in margin trades. SEBI has restricted brokers from misusing PoA.

10.Can SEBI suspend my Demat Account?
A:Yes, for regulatory violations, fraud, or non-compliance with KYC norms.

Solution:

  • Update Aadhaar (UIDAI website or center) if incorrect.

  • Correct PAN (NSDL or UTIITSL portal) for tax compliance.

  • Ensure the same name on your bank, passport, and Demat account for smooth transactions.

👉 It is highly recommended to keep your name uniform across all financial and legal documents to avoid complication

11.I have changed my name on my PAN card. Is it mandatory to update the same in all my records? What should I do next?

A: Yes, after changing your name on your PAN card, it is highly recommended to update the same across all financial and legal records to avoid discrepancies. Here’s what you should do:

1. Update Aadhaar (Mandatory for PAN-Aadhaar Linking)

  • Visit the UIDAI website or an Aadhaar Enrollment Center to update your name.

  • Ensure the new name matches your PAN to avoid tax-related issues.

2. Update Your Bank Account (Required for KYC & Transactions)

  • Submit a name change request along with your updated PAN card and supporting documents (e.g., Gazette Notification, Marriage Certificate, or Affidavit).

3. Update Your Income Tax Records (Essential for ITR Filing)

  • Once PAN is updated, the Income Tax Department will automatically reflect the change, but verify it on the e-filing portal.

4. Update Demat & Trading Accounts (Mandatory for Stock Market Transactions)

  • Contact your broker or depository participant (NSDL/CDSL) and submit a request along with updated KYC documents.

5. Update Passport & Other IDs (For Visa & International Transactions)

  • Apply for a passport name change if you plan to travel internationally.

6. Update EPF, Insurance, and Other Financial Accounts

  • Notify your employer, insurance provider, and mutual fund houses to update your records.

👉 While PAN-Aadhaar matching is mandatory, updating all other records ensures smooth financial and legal transactions without any future complications.

12. How many Demat accounts can a person have? Are there any limitations?

A:
✅ No Limit: An individual can open multiple Demat accounts with different Depository Participants (DPs) like NSDL and CDSL under the same PAN card. There is no restriction on the number of accounts.

Limitations & Considerations:

  1. KYC Requirement:

    • Every Demat account must be linked to a unique PAN and undergo KYC verification.

  2. Maintenance Charges:

    • Each Demat account comes with Annual Maintenance Charges (AMC) and other fees. More accounts mean higher costs.

  3. Ease of Portfolio Management:

    • Holding multiple accounts can make it harder to track investments, dividends, and corporate actions.

  4. Single Trading Account Per Broker:

    • While you can have multiple Demat accounts, each broker allows only one trading account per PAN.

  5. Regulatory Compliance:

    • SEBI monitors transactions across accounts, so misuse (e.g., tax evasion or manipulation) may lead to scrutiny.

Recommendation:

👉 If you need separate accounts for different strategies (long-term vs. trading) or for diversification, multiple Demat accounts can be useful. However, keeping it minimal ensures better management and lower costs.

13.Is there any scheme to avail AMC (Annual Maintenance Charges) exemptions for Demat accounts?

A: Yes, there are certain schemes and exemptions available to reduce or waive AMC charges on Demat accounts. These include:

14. BSDA (Basic Services Demat Account) – SEBI Scheme

✅ Eligibility:

  • The investor should have only one Demat account across NSDL/CDSL.

  • The account must be individual (not corporate or joint holding).

  • The total holding value should be₹4,00,000* to ₹10,00,000*.