You can now open a secondary demat account entirely online in Zerodha. With a secondary demat account, you can transfer securities from your primary demat account and benefit from separating your long-term investments from short-term trades, better portfolio organisation, and improved tax planning.
To open a secondary demat account in Zerodha, follow these steps:
Awesome. So FIFO is on demat level - learned this new. Now can use the secondary account to move the long term holdings and do swing trades in stocks which are already held for long term.
@TheGouda
SEBI does not allow you to open a second demat account with the same broker under the same PAN card.
Then how is Zerodha allowing users to open secondary demat accounts? Could you please provide details on this?
Other than FIFO what value add is there with the secondary demat account? If I have to pay amc and transfer charges just to sell my long term holdings then isn’t it wise for me to open a free demat account with another broker just for my long term portfolio? Many people like me have already been doing it so please explain what other value add is there than FIFO?
Would secondary demat accounts count as new investors for Zerodha? I saw a post few days back where ideas where being asked for - to increase number of account holders - will this add to that to show growth in investor count?
Other than that, the value add is that you don’t get instant access to sell your holdings. Yeah, there are many people who don’t want instant access, because you get time to react to your emotions. You can’t act on impulse.
Back when I used to trade, most of my holdings were kept in an offline account. If I wanted to sell, I had to first transfer it to an online account and then sell it. It has taken us a long time to implement this, but essentially, the idea is to replicate that. And this strategy of not having access to sell it immediately on news or other impulses, essentially meant that I held on to a lot of good companies, which otherwise I wouldn’t have.
Well, if one is that impulsive not able to differentiate between short term and long term goals as far as stock trading is concerned then he is not fit enough to be called as a trader or investor. I am there kind of person who has held some stocks for more than 15 years now so impulsive trading doesn’t apply to me. Anyway, this feature is not for me if it’s just for FIFO thing…
I have got the secondary demat account open, but I am still seeing this message while trying to initiate a transfer. Am i missing any step prior to this?
I received the same error . It took around 3–4 days for the process to complete , after which the error disappeared. I have also raised a support ticket (not sure the ticket or the time decay help it)
Please note: An additional 1–2 days may be required to complete the CDSL authorisation for adding a secondary demat account. I waited for the email from CDSL, as mentioned in the Secondary Demat FAQ - but no emails, so manually added the secondary demat to my beneficiary list via CDSL Easiest.
Now I’m stuck — I’ve transferred the stocks, but they are not showing up in the vault under the secondary demat account.
Yeah, there are many people who don’t want instant access, because you get time to react to your emotions. You can’t act on impulse.
