Maximum amount for retail investor

What is the maximum amount a retail investor Demat account can hold? Is there any upper limit for that? How much can a retail investor trade through a platform like Zerodha ?

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There is no such limits i think.
But, Why would someone open like 5 demat accounts ?

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Sorry, my bad for not mentioning it properly. I didn’t mean the COUNT of Demat account. I meant AMOUNT (Money) a Demat account can hold by a retail investor/trader. I there any upper limit for that and how are taxes calculated for huge capital for short-term trading?

As far as I know, there are no such limits.
Anyway that person will be paying tax / commission. So, no problem.

There are per order restrictions, but you can place multiple orders for that.
So there will be no such issue (with high to very high capital).

The only place where there are restrictions for retail traders is in the IPO. There are no limits in other segment.

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There isn’t any restriction as such.


Thanks @ShubhS9 @TradeXMaster

So we already pay tax on securities transaction each time right? So other than that do we need to pay income tax on trading if our asset is in demat account ?

Or is income tax accountable if we sell the stock and take the money to bank ?

It’s a “Capital gain” tax.
So you will not pay anything if you don’t sell.

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I enter a trade and exit every week or two. But it’s not withdraw from my trading account or i re-enter another trade. Is it still applicable?

Capital Gains Tax is applicable when you sell your investments. Depending on your holding period, you will have to either pay Short Term Capital Gains Tax or Long Term Capital Gains Tax. You can learn about taxation here:

It doesn’t matter if you withdraw the money from your trading account or not. Depending on your trading activity you will be liable to pay taxes for each financial year.

You don’t have to pay Capital Gains Tax each time you exit from your investments. This is one time process at the end of each financial year.

Would suggest you check out the Varsity module linked above.


Thanks @ShubhS9

There will not be any upper limit… btw, how much do you have??? If you have a large bundle, count me as a friend :wink: