Is there any joint position trading in stocks in India?

"In the context of investing in Indian equities, there’s no concept of "joint position trading" in the sense of two or more individuals jointly placing trades under a shared trading account.

1. Trading Accounts Must Be Individual
SEBI regulations and broker policies stipulate that trading accounts must be held individually and are linked exclusively to an individual’s PAN. This ensures clarity in taxation and regulatory compliance. A joint trading account is not permitted under Indian law.

In the context of investing in Indian equities, there’s no concept of "joint position trading" in the sense of two or more individuals jointly placing trades under a shared trading account. Here's how it actually works:

Attempting a "joint trading account" may be considered akin to a partnership firm, which is a different account type altogether.

2. Joint Demat Accounts Are Allowed

While trading accounts must be individual, demat accounts (where securities are held) can be held jointly, with up to three holders (one primary and up to two joint holders).

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All joint account holders must provide individual KYC documents, and for any transaction or transfer, the authorization from all holders may be required.

Most brokers (Zerodha) support offline opening of joint demat accounts. Zerodha Supports this.

3. Alternative Setup: Entities & Authorized Trading:
If you want to manage investments collectively or have someone else place trades:

Entities like HUFs, partnership firms, LLPs, or corporate can open their own (non-individual) accounts to trade. This is permissible and requires appropriate documentation.
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Unlike Canada (where a “trading authority” can be assigned), India does not generally allow a separate login or trading authority under another person’s account.
a. Joint Trading Account No Not permitted; trading linked to individual PAN.
b. Joint Demat Account Yes Up to 3 holders; used for holding securities.
c. Trading via Entity Account Yes HUFs, firms, LLPs, corporates can open non-individual trading accounts.
d. Assigned Trading Authority No Indian brokers don’t generally support delegated trading logins.

So, if your goal is to trade jointly, you’ll still need separate trading accounts for each individual, while potentially sharing a demat account for convenience—or explore entity-based account structures depending on your circumstances.

Ravi EQS
An expert with a decade experience in Indian F&O and Equity Trading.

Is there any joint position trading in stocks in India?

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