Overview

• Nithin Kamath said he earlier kept an offline demat for investments and an online account for trades, with physical slips creating friction that helped him hold longer and earn better returns.
• Zerodha now offers customers a secondary demat that can be opened online via Kite or Console with Aadhaar-based IPV and e-sign, with activation typically completed within about 72 working hours.
• Keeping long- and short-term holdings in separate demats means the tax department’s FIFO rule is applied per account, which coverage says can simplify calculations and reduce unintended short-term treatment.
• Off-market transfers between the two demats usually take around 24 hours, introducing a cooling-off period that limits instant liquidation of long-term holdings.
• Each demat attracts a separate annual maintenance fee of ₹300 plus 18% GST, off-market transfers cost ₹13 plus GST per transaction, and some long-term holdings show on Console rather than the Kite trading screen.