Zerodha two demat accounts: Zerodha has launched a new feature on its Kite and Console platforms where investors can now open a second demat account with the same mobile number. This move is only for resident individuals and not open for NRIs, corporates, partnerships or HUFs. The company already serves close to 8 million active users and with this update it looks to boost user activity and also earn extra revenue through transfer charges and annual fees.
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As per NSE numbers, Zerodha is the second biggest broker in the country by active users as of March 2025, just behind Groww.
Zerodha two Demat Accounts
SEBI already allows people to have more than one demat account either with the same Depository Participant or across different ones. A SEBI study showed that more and more people are choosing to do this. In fact, the number of unique PANs with multiple demat accounts jumped from 6.18 million in FY17 to 37.3 million in FY24. According to CNBC TV18, this rise is much faster compared to the overall growth of demat accounts, which went up 444% in the same time to touch 151.4 million.
Zerodha’s new feature makes this option easier for its users. The idea is to give investors a way to separate their long-term holdings from daily trades. By doing so, investors can manage portfolios more carefully and also handle taxes better using FIFO tracking.
Key benefits of maintaining a secondary demat account include:
- Segregation of investments—Separate long-term holdings from trading positions.
- Multiple broker advantages—Access better tools, research, or lower charges across brokers.
- Risk management—Spread investments to reduce reliance on a single broker.
- Tax & ownership flexibility—Simplify accounting and maintain both joint and individual holdings.
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Features and Costs
The second demat account works a little differently from the main one. Securities kept in the secondary account will not show up on Kite, Zerodha’s trading app, so investors don’t mix them up with daily trades. Instead, these holdings stay visible on Console only, keeping them safe from quick decisions.
Shares can be moved back and forth between the two accounts through an online transfer. The system automatically updates the buy averages and applies FIFO rules. Every transfer costs ₹25 plus 18% GST. Both the primary and secondary accounts also come with a yearly maintenance fee of ₹300 plus GST.
Limits
There are some limits too. The shares in the second account cannot be used as collateral for margin trading. If someone wants to sell them, they must move the shares back to the main account first.
