(Solved) Account Freeze Warning for Opening Another Demat Account

[SMS91]

##Issue Resolved: Falsely Sent Email from SBI Securities##

I have a demat account with SBI Securities and Groww. SBI Securities was opened first. Today, I received an email claiming to be from SBI Securities, asking for the rationale behind opening another demat account within 30 days. The email stated that if no explanation is provided, the demat account will be frozen as per the NSDL initiative. Has anyone else received such an email? I think opening demat accounts with different providers is okay
Is this a real or scam email, or am I reading it wrong? I'm new to demat and trading.

 

[financewizard]

I have a demat account with SBI Securities and Groww. SBI Securities was opened first. Today, I received an email claiming to be from SBI Securities, asking for the rationale behind opening another demat account within 30 days. The email stated that if no explanation is provided, the demat account will be frozen as per the NSDL initiative. Has anyone else received such an email? I think opening demat accounts with different providers is okayView attachment 66069
Is this a real or scam email, or am I reading it wrong? I'm new to demat and trading.

Currently, there is no restriction on the number of Demat / trading accounts that a person can have. You can open an account with all the brokers at the same time. No one can question you.
Not sure why SBI is crying regarding this. First, check if this is genuine mail from SBI Securities. If genuine, just respond with some random writeup - like the one said mentioned in this link - https://www.mstock.com/articles/pros-and-cons-of-opening-multiple-demat-accounts .

 

[varun__goel_]

I have a demat account with SBI Securities and Groww. SBI Securities was opened first. Today, I received an email claiming to be from SBI Securities, asking for the rationale behind opening another demat account within 30 days. The email stated that if no explanation is provided, the demat account will be frozen as per the NSDL initiative. Has anyone else received such an email? I think opening demat accounts with different providers is okayView attachment 66069
Is this a real or scam email, or am I reading it wrong? I'm new to demat and trading.

Check sender mail id

 

[akshayhs]

Check the sender and the email if it is genuine. If it is, first ask them to point out the master circuar from SEBI/NSDL in their response email about that specific requirement. (I don't think there should be one. You are free to open as many DEMAT accounts as you like as long as every account is linked to you. Threaten them if they don't respond with the details you have asked you are approaching SEBI citing unwanted requests. If they don't respond, just leave it.

 

[SMS91]

Received this email.The previous email was sent in error.

 

[RAMESH BABU N]

One can not have more than one DEMAT account - per PAN - in any one DP (Depositary Participant).

That means - one PAN can have multiple demat accounts. But, NOT TWO demat accounts in the same DP firm - with the same PAN as first/sole holder.

 

[6ix9ine]

Received this email.The previous email was sent in error.View attachment 66093

gg, so it's all good then.

One can not have more than one DEMAT account - per PAN - in any one DP (Depositary Participant).

That means - one PAN can have multiple demat accounts. But, NOT TWO demat accounts in the same DP firm - with the same PAN as first/sole holder.

So, OP is fine in this case as SBI securities uses NSDL where I'm 100% sure groww uses CDSL. Hence, there are 2 distinct DP firms and let's say if the mail was correct, then he should've been fine either case.

 

[SMS91]

Moderators, please edit the thread title to reflect that the problem is solved. @ashwink @vaibhav111

 

[ramirami]

gg, so it's all good then.


So, OP is fine in this case as SBI securities uses NSDL where I'm 100% sure groww uses CDSL. Hence, there are 2 distinct DP firms and let's say if the mail was correct, then he should've been fine either case.

This is incorrect interpretation. You cannot have two demat accounts with groww or two with sbi or two with zerodha etc. It's perfectly fine you have one cdsl demat with groww and another cdsl demat with zerodha.

 

[6ix9ine]

This is incorrect interpretation. You cannot have two demat accounts with groww or two with sbi or two with zerodha etc. It's perfectly fine you have one cdsl demat with groww and another cdsl demat with zerodha.

Please enlighten me, where I said you can have two demat accounts in Groww?

It's impossible. As soon as you try to create a new account with the same PAN, Groww will throw an error saying you cannot do that since you already have a demat account with them.

I guess, you didn't even read the original post and randomly wrote an answer. Well, let me make the post clearer for you:

OP received an email from SBI Securities stating that he could not open a new demat account with any depository. But, later on SBI realized their mistake and told him that it was a wrong email.

There are many examples where people have multiple demat accounts in the same DP but with different brokers, and that's not an issue at all and it's not even related to this thread query.

Example: X person has a demat in Paytm Money as well as in Groww. Both are on CDSL.

 

[ramirami]

So, OP is fine in this case as SBI securities uses NSDL where I'm 100% sure groww uses CDSL. Hence, there are 2 distinct DP firms and let's say if the mail was correct, then he should've been fine either case.

It does not matter that one is CDSL and other is NSDL, is the point I was making.

There are many examples where people have multiple demat accounts in the same DP but with different brokers, and that's not an issue at all and it's not even related to this thread query.

6ix9ine, I think you are confused as to what a "DP" is. CDSL and NSDL are depositories, not depository participants (DPs). Groww, Zerodha, ICICI Securities etc are depository participants. One _cannot_ normally have multiple demat accounts with the same DP but can have multiple with the same depository.

I also do not understand why you are being needlessly aggressive, with your "I guess, you didn't even read the original post and randomly wrote an answer. Well, let me make the post clearer for you" remark. Please reconsider your tone.

 

[6ix9ine]

It does not matter that one is CDSL and other is NSDL, is the point I was making.

Yes, I'm already aware of that, but that wasn't my comment at all. If you take a closer look, you'll see that I was replying to a comment made above me. I didn't write the original comment. You should have replied to the person who did, instead of replying to my comment which has no relation to your answer nor the OP's issue.

6ix9ine, I think you are confused as to what a "DP" is. CDSL and NSDL are depositories, not depository participants (DPs). Groww, Zerodha, ICICI Securities etc are depository participants. One _cannot_ normally have multiple demat accounts with the same DP but can have multiple with the same depository.

Yes, I realized that, and you are absolutely correct here.

I also do not understand why you are being needlessly aggressive, with your "I guess, you didn't even read the original post and randomly wrote an answer. Well, let me make the post clearer for you" remark. Please reconsider your tone.

If you felt the tone was a bit rude, then I'm sorry.

 

[SMS91]

Guys, I received both of your comments. I only have one account with SBI Securities and Groww. Both of you are knowledgeable in these matters, and I appreciate you taking the time to comment. In my opinion, please don't waste your precious time on miscommunication.