Zerodha Secondary Demat Account: How to Open, Benefits, Charges & Everything You Need to Know

One of the most famous Brokerage firms in India, Zerodha, has now introduced a secondary demat account for users to manage their investments more efficiently. It allows investors to separate long-term holdings from short-term trades. However, secondary account shares do not appear on Kite; they are visible only on the Zerodha Console.

What is a Zerodha Secondary Demat Account?

Zerodha's secondary demat account is an additional account alongside your primary demat account which acts as a separate space to hold securities, enabling you to segregate long-term investments from active trading portfolios. With the help of a secondary account, investors can manage portfolios better by reducing impulsive selling and streamlining tax planning using FIFO (First In, First Out) rules.

Benefits of a Zerodha Secondary Demat Account

One can keep long-term and short-term shares separate to reduce tax on capital gains using FIFO rules.

Shares in the secondary account are visible only on Zerodha Console, which helps avoid impulsive selling.

With two accounts it's easy to clearly separate long-term investments from active trading stocks to manage the portfolio better.

Users can also move shares online between primary and secondary accounts whenever needed. However, transfer charges apply for that.

How to Open a Zerodha Secondary Demat Account

Opening a secondary demat account with Zerodha is very simple and can be done fully online; however, it is only available for resident individual investors, and NRIs, corporates, HUFs, or other non-individual accounts are not eligible.
To open a Zerodha secondary demat account, start by accessing the Kite app or web platform, ensuring your Aadhaar is linked to your mobile number. Next, submit your nominee details and complete the In-Person Verification (IPV) along with OTP verification. The account is usually activated within 48-72 working hours, after which you will receive a separate TPIN for your secondary demat account.

Charges for Zerodha Secondary Demat Account

According to the data from the Zerodha official website, the annual maintenance charge is Rs. 300 + 18% GST per account. Each demat account, both primary and secondary, is charged separately. Share transfer charges are Rs. 25 + 18% GST (plus CDSL charges) per transaction when moving shares between accounts.