Secondary demat account
You can open a secondary demat account online for free. It serves as a separate holding space for your long-term holdings, helping manage taxes more efficiently and keep your Kite holdings more organised.
Benefits of secondary demat account
Superior tax benefits
FIFO applies per demat account. Keeping long-term holdings separate makes it easier to sell short-term quantities while retaining LTCG benefits.
Stay organized
Keep long-term and short-term portfolios separate for clarity and ease of tracking.
Single login
Manage both accounts with a single login on Console.
Prevents impulsive selling
Moving shares between accounts takes 24 hours, giving you time to reconsider emotional decisions.
How to open a secondary account?
Apply online
Log in to Console → Account → Demat.
Verify & eSign
Complete IPV and eSign using your Aadhaar OTP.
Start using
Account activated within 24-48 hours
Charges for a secondary demat account
(between primary & secondary)
FAQs
Who can open a secondary demat account?
Only resident individual accounts can open a secondary demat account. NRIs and non-individual accounts (corporate, partnership, HUF, etc.) are not eligible.
How can I transfer securities from my primary demat account to my secondary demat account?
You can easily transfer securities from your primary to secondary demat account by adding your secondary demat account as a beneficiary and completing OTP verification.
Will my secondary demat holdings appear on Kite?
No. Holdings in your secondary account are visible only on Console, keeping long-term investments separate from your active trading.
Can I sell shares directly from my secondary account?
No. To sell, you must first transfer shares to your primary account (takes 24 hours) and then sell through Kite.
Will I get a separate P&L report for my secondary demat account?
No. You can’t trade directly from the secondary account, so there’s no separate P&L. Once you transfer shares to your primary account and sell them, those trades will be reflected in your regular tax P&L report.
Can I transfer mutual funds between my primary and secondary demat accounts?
No, you cannot.
Can I use shares in my secondary account as collateral for trading?
No. Shares in the secondary account cannot be pledged as margin for trading.
How to close my secondary demat account online?
No. Account closure is currently an offline process.