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Can there be multiple farms in a SharePoint server. Currently i'm having one farm in SharePoint and wondering if it is possible to have one more.

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No this is not possible. one server can have only SharePoint farm. But you have to mutliple farm's database on single SQL server.

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The short answer is no. The long answer is it might be useful if we understood what you are trying to do. Why would you want multiple farms on a single server? If you need multiple URLs you can create several web applications or use host named site collections. If it is a security concern then this again can be achieved with separate web applications and content databases.

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