Short answer

See the steps and notes below for Arrow account opening guidance.

1. What is a secondary demat account?

A secondary demat account is an additional demat account that you can open alongside your existing (primary) demat account through iRage Console. It works like a separate holding space where you can keep securities that you do not intend to sell or keep for a long time. It also helps with tax efficiency through better FIFO management.

2. Can I move shares between my primary and secondary accounts?

Yes, you can easily transfer shares between accounts online through Console. The buy average gets automatically updated within 3 working days for stocks transferred between primary and secondary demat accounts, so you don’t need to update it manually.

3. Will my secondary demat holdings appear on Arrow?

No, shares in your secondary account will not appear on Arrow. You can view them only on Console. This helps maintain discipline by keeping long-term investments separately from your active trading interface.

4. Will secondary demat transfers appear in my Tax P&L report?

No, secondary demat transfers will not appear in your Tax P&L report since a secondary demat account only holds shares (no buying or selling happens there). When you transfer shares back to your primary account and sell them, those sale transactions will be included in your Tax P&L report.

5. What are the charges for a secondary demat account?

Account Maintenance Charges (AMC): under the regular scheme, yearly AMC for individuals is Nil on each demat account. BSDA benefits do not apply when you hold more than one demat account.

Off-market / “other than Arrow” demat debit charges: ₹20 or 0.03% of value, whichever is higher, + GST, per debit instruction under the Arrow depository tariff sheet.

See also: AMC slabs and DP charges.

6. Who can open a secondary demat account?

Only resident individual accounts can open a secondary demat account. You cannot open one if you have NRI accounts or non-individual accounts (corporate, partnership, HUF, etc.).

7. Can I sell shares directly from my secondary account?

No, you cannot sell shares directly from your secondary account. To sell shares from your secondary account, you must first transfer them to your primary account, which takes 24 hours, then sell from Arrow.

8. Can I convert my secondary demat account to a primary demat account?

No, it’s not possible to convert a secondary demat account into a primary one, or vice versa.

However, moving shares between your accounts is straightforward. You can easily transfer shares between accounts online through Console. Console automatically updates buy averages and applies FIFO calculations when you make transfers.

9. What happens during corporate actions like bonuses and splits?

Corporate actions are processed in the same demat account where your shares are held. If your shares are in your primary demat account, the bonus shares or split shares will be credited to your primary account. If your shares are in your secondary account, the corporate actions will be processed in your secondary demat account.

10. What’s the advantage of having a secondary demat account with Arrow over having accounts with different brokers?

Having a secondary demat account with Arrow has these advantages over using different brokers:

Tax filing: All your trades are in one place, making it easy to file taxes with Arrow’s superior Tax P&L reports.

Prevents panic selling: When markets crash, you might want to quickly sell your long-term investments out of fear. With different brokers, you can sell your investments instantly from each account. But with Arrow’s secondary account, you need to transfer shares first, which takes one day. This waiting time helps you calm down and stick to your long-term plan.

Easy management: You use one login for all accounts and see everything in one place, instead of managing multiple logins with different brokers.

11. Can I use shares in my secondary account as collateral for trading?

No, you cannot use shares in your secondary account as collateral for trading or pledge them for margins.

12. What is the TPIN for my secondary account?

Once your secondary account is activated, you will receive the TPIN via email. You can also generate the TPIN by entering the BO ID for your secondary account. TPIN will be different for your primary and secondary demat accounts.

13. Do transfers between primary and secondary accounts attract capital gains?

No, transferring shares between your primary and secondary demat accounts does not attract capital gains. These are considered off-market transfers and are not taxable events.

14. Can I transfer mutual funds between my primary and secondary demat accounts?

Currently, you cannot transfer mutual funds between accounts. This feature will be available soon.

15. Can I close my secondary demat account online?

No, you cannot close your secondary demat account online. You must follow an offline account closure process to close your secondary account.