What is a Joint Demat Account?

A joint Demat account is a single Demat account held by multiple individuals, allowing securities to be owned and operated collectively. The extent of operational authority depends on the selected holding mode and the Depository Participant, which determines how transaction authorisation is handled.

There are three commonly used operating modes:

• Either or Survivor

Any one of the joint holders may operate the account independently. If one holder passes away, the surviving holder(s) continue to hold operational rights.

• Jointly

All holders are required to authorise transactions. This structure involves shared consent for account activity.

• Anyone or Survivor

Any holder may operate the account during the lifetime of all holders. After the death of one holder, the remaining holder(s) continue account operations.

These operating modes define how control and continuity are structured across joint holders.

A joint Demat account enables multiple individuals to hold securities under a single account framework. This structure is commonly used by family members, business partners, or co-investors who prefer consolidated ownership records and coordinated account operations.

It also centralises communication related to dividends, corporate actions, and issuer notifications.

A joint Demat account includes structural features that support shared ownership and coordinated operations:

• Shared Ownership

Securities are held collectively in the names of all registered holders.

• Transaction Rights

Based on the selected operating mode, transactions may be initiated by one holder or require authorisation from all holders.

• Nomination Facility

A nominee can be registered to receive securities if all account holders pass away.

• Asset Access Continuity

Following the death of a holder, surviving holders may continue account operations in line with the registered holding mode and depository procedures.

• Unified Account Management

Consolidated statements and communications reflect combined holdings and transactions.

• Compliance with Regulatory Norms

Joint Demat accounts operate under SEBI regulations and Depository Participant requirements.

• Ledger Balance Tracking

Joint holders can view the Ledger Balance in Demat, which reflects available funds for settlements and purchases.

• Transaction Security and Authorisation

Depending on the operating structure, authentication mechanisms such as the TPIN in a Demat account may be required for transaction execution.

Joint Demat accounts support shared holding and coordinated account administration across multiple individuals.

• Collective Account Structure

Allows multiple holders to maintain securities within a single account.

• Consolidated Records

Statements reflect combined holdings and transaction history.

• Centralised Communication

Depositories and issuers send account-related updates to registered holders.

• Continuity of Operations

Surviving holders may continue account activity depending on the operating mode.

• Shared Operational Responsibility

All holders are jointly accountable for account activity and compliance requirements.

Opening a joint Demat account requires all holders to submit documents in line with depository and KYC regulations. Commonly required documents include:

• Proof of Identity

PAN card (mandatory for all holders). Other accepted documents may include Aadhaar card, passport, voter ID, or driving licence.

• Proof of Address

Documents such as Aadhaar card, passport, bank statements, or recent utility bills reflecting the current residential address.

• Photographs

Recent passport-sized photographs of all joint holders.

• Know Your Customer (KYC) Documentation

Completed KYC forms for each holder, submitted digitally or physically depending on the DP process.

• Cancelled Cheque

Used for linking the Demat account with a bank account for settlement purposes.

• Signature Verification

Signature confirmation through submitted documents or in-person/video verification, as applicable.

Document requirements may vary slightly across Depository Participants based on operational procedures.

Read More: AMC Free Demat Account

tivitiesOnline onboarding frameworks allow multiple holders to apply for a joint Demat account through digital submission and verification processes prescribed by Depository Participants (DPs) and regulators. All proposed holders are included at the application stage, with one individual recorded as the primary holder and the others as joint holders.

The process generally involves capturing account details for all holders, uploading identity and address documents, and completing KYC formalities individually. Authentication is typically carried out using Aadhaar-based OTPs or digital signatures, followed by In-Person Verification (often conducted through approved video-based methods). Submitted information is validated against PAN and central KYC records before backend checks are completed by the DP.

Once verification requirements are met for every holder, the joint Demat account is activated and a unique client ID is assigned. Account credentials and confirmation details are then shared through the registered contact information. Digital onboarding integrates documentation, verification, and activation into a unified workflow, reducing reliance on physical paperwork.

Under India’s depository framework, the holding structure of a Demat account is treated as fixed once the account is opened. This means a joint holder cannot be added to an already active individual Demat account, nor can the existing order of holders be modified.

Depositories and Depository Participants follow this approach because the holder sequence (first, second, third holder) forms part of the account’s legal identity and is embedded across settlement, transmission, compliance, and reporting systems. As a result, appending or changing holders through account modification is not permitted.

When a different holding pattern is required, the standard process involves opening a new Demat account with the intended joint holders. Securities from the original account can then be moved to the new account through recognised mechanisms such as off-market transfer or closure-cum-transfer, subject to applicable documentation, verification, and DP procedures.

This structure helps maintain clarity of ownership, preserves KYC and AML consistency, and ensures alignment with depository record-keeping and regulatory standards.

Joint Demat accounts operate under predefined holding instructions and regulatory requirements.

• Transaction Authorisation

Transactions are executed based on the registered operating mode, requiring approval from one or all holders.

• Account Communication

Statements, alerts, and transactional updates are issued to registered joint holders.

• Transfer of Securities

Outgoing transfers follow the authorised holding pattern and applicable depository procedures.

• Account Closure

Closure requires consent from all holders and settlement of any outstanding balances or pending transactions.

• Regulatory Compliance

Joint Demat accounts are subject to KYC norms, Anti-Money Laundering (AML) provisions, and SEBI-depository regulations.

Joint account structures involve shared ownership and predefined operating rights, which makes it important to understand how responsibilities and permissions are distributed among holders.

Key aspects typically reviewed in joint holding arrangements include:

Order of Holders

The sequence of names (first, second, and third holder) determines ownership hierarchy and operational authority. This order generally cannot be modified later, and any change usually requires opening a new joint account and transferring holdings.

Mode of Operation

Joint accounts operate under predefined formats such as Either or Survivor, Anyone or Survivor, or Jointly. Each mode governs how transactions are authorised and how holdings are transmitted if one holder passes away.

Regulatory Documentation

All holders are required to complete KYC formalities individually, including identity verification, address proof, and PAN linkage, in line with SEBI and depository regulations.

Tax Treatment

Income arising from jointly held securities is typically assessed in the hands of the first holder, unless a different ownership arrangement is supported by documentation. Capital gains attribution also follows holder hierarchy and applicable tax rules.

Nomination Framework

Depository regulations require investors to either register a nominee or formally opt out. In joint accounts, nomination applies only if all holders are deceased, as survivorship rules take precedence.

Operational Accountability

Transactions executed under permitted operating modes are binding on all holders. This shared structure means compliance obligations, confirmations, and account communications apply collectively.

Transmission vs Transfer

In the event of a holder’s death, securities move through a transmission process rather than a transfer, provided survivorship conditions are met. Transmission due to death does not involve stamp duty, as it is not treated as a transfer under stamp laws.

These considerations outline how joint ownership affects control, compliance, and continuity within a shared securities account framework.

When one of the joint holders passes away, the treatment of securities in a joint Demat account depends on the operational mandate selected at the time of account opening.

In Either or Survivor and Anyone or Survivor arrangements, the surviving holder(s) continue to operate the account, subject to submission of the prescribed death-related documentation to the Depository Participant. Ownership of the securities is transmitted to the surviving holder(s) in line with depository rules, without requiring a succession certificate or probate in most standard cases.

For accounts operated Jointly, where all holders are required to authorise transactions, the process differs. Upon the death of one holder, the account is typically frozen for debits until transmission formalities are completed. The surviving holder(s) and legal heir(s), if applicable, must complete the transmission process as per depository regulations, which may involve additional documentation depending on whether a nominee is registered.

If a nominee is recorded and all joint holders pass away, securities are transmitted to the nominee. Where no nominee exists, transmission follows the legal heir process based on applicable succession laws.

Depositories prescribe standard transmission procedures to ensure continuity of ownership while maintaining regulatory safeguards. These processes are designed to provide clarity on entitlement and enable orderly transfer of securities following the death of a joint holder.

A joint Demat account enables multiple individuals to hold securities under a single account structure. Its operating modes define how transactions are authorised and how continuity is managed among holders. Together with consolidated reporting and shared accountability, this structure supports coordinated ownership within regulatory frameworks.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.