Is it allowed to have one demat with three benificiaries linked to 3 trading account which is individually in the name of the benificiary which have a single PAN attached ? So the demat has 3 names with 3 pans. But there are 3 seperate trading accounts each with pay-in on this demat and only 1 trading account attached with demat with a POA for pay-outs ?
Also, is there a limit to the number of beneficiaries for a demat ?
Can someone please respond ?
If you’re trading with Zerodha, then I’m afraid, the same demat cannot be mapped to 3 trading accounts, despite the demat account being held by three separate beneficiaries.
This is because, the holdings that you see on the terminal are derived from what you’re holding in the demat account. In the event that the same demat is mapped to multiple trading accounts, the same set of holdings would show, thereby allowing a client to sell it multiple times.
@VenuMadhav: I have mentioned a situaiton where only ONE of the trading account has POA attached and hence the demat account can be debitted only by one trading account. The other 2 trading accounts will be mapped only for PayIns. Is that possible ?
So Example
Demat Account BO Names: A,B,C - Lets call this D
Zerodha Client ID of A : A1
Zerodha Client ID of B: B1
Zerodha Client ID of C: C1
A1 has POA linked to Demat D and can credit and debit stocks
B1,C1 = can only buy and the shares are credited to demat D
Is that possible?
No, that isn’t possible. The system doesn’t allow us to have a separate account for payout & another for payin.
@VenuMadhav : Not sure if you are reading too fast but I am asking a slightly more nuanced question. I didnt ask the payout and pay in to be seperate. So I will reiterate again - 1 account with BOTH payout and payin. 2 more accounts with ONLY pay-in. My question isnt about what Zerodha can or cannot do. Its a general query. Can you answer it from the perspective of what is allowed ?
I’ve read your requirement and I’m confirming that such a facility isn’t available. I can only respond to you on the basis of how systems work at our end.
You’re asking us to map the same demat account to two or more different trading Id’s, which isn’t possible, regardless of the use you want to put each of the demat account to.
@VenuMadhav: If you didnt work for Zerodha and had all the freedom with systems - would you think legally this would work ?
@VenuMadhav: Venu - please can you answer ? There is no one else I know who might be able to give a credible answer to it. Is it possible legally according to your opinion ?
@abbanerjee As Zerodha, we would require the first holder of the demat account to be the same as the holder of the trading account. It’s for this reason we don’t map multiple demats to the same trading account.
Without working for Zerodha, if I had to look at it, I would still have qualms mapping one demat to more than one trading. I’ve asked around, and they seem to have a similar opinion.
Okay, thanks for checking around. I thought this way one could get around nominations cleanly and legally.