How to Know Your Demat Account Number
If you wish to invest in the Stock market in India, you would need a Demat account. Apart from just holding stock, a Demat account also stores other securities like government bonds, mutual funds, commodities, etc. You can open a Demat account with the help of any depository participant (DP).
A DP can be a bank, a Non-Banking Financial Company, or a stockbroker. They help you open a Demat account with depositories responsible for storing your Demat account. It’s preferred to open a Demat account with a stockbroker as they assist you in opening a Demat account and help you in trading.
Every individual can open multiple Demat accounts, since there is no restriction on the number of accounts. However, each account you have has a unique number associated with it. This unique number is known as a beneficiary owner or Demat Account Number.
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Meaning and Importance of a Demat Account
‘Demat’ refers to replacing physical records or certificates with a paperless electronic system. The goal of creating a Demat account is to make online stock market trading easier for investors. A Demat account, also known as a Dematerialized account, allows you to keep shares and assets in an electronic format. With a Demat account, an investor no longer has to be concerned about the complicated paperwork associated with investing. The risk of losing important papers decreases significantly as the necessity to retain physical records of investment paperwork gets reduced. Furthermore, a Demat account lowers investors’ overall transaction costs while allowing them to work from anywhere. Demat accounts also enable the quick transfer of securities, saving investors time and money.
What is a Demat Account Number?
Your Demat account number combines your DP ID and your customer ID. The first eight digits of your Demat account number are typically your DP ID, and the following eight digits are the account holder’s customer ID. When you register a Demat account with a depository participant (DP), you will be given a unique account number known as a Beneficiary Owner Identification Number (BOID), which will be used for all future transactions.
Importance of Demat Account Number
Once your Demat account has been successfully verified, you receive a Demat account number. That is to say. Your Demat account number reflects you and vice versa. One of the key conditions for trading online is possessing a Demat account number. Therefore, another necessity for conducting online trading is a trading account.
The two Demat Account Number Formats
In most cases, the depository participant sends you a welcome email when you submit the appropriate paperwork to start a Demat account. The welcome email includes a welcome greeting, important information about your Demat account, and the number. For example, if you create an account with CDSL, the Beneficiary Owner ID will be a numeric 16-digit number. If you create an account with NSDL, your DP account number will begin with IN.
How to Check your Demat Account Number?
Once you choose a stockbroker to open a Demat account, you can receive a welcoming letter from the Depository. It contains complete information about your Demat account, including your Demat Account Number.
In your welcome letter, your Demat account number will get mentioned. It would be 16-digits or 14-digits based on your depository in which you open your Demat account.
Whenever you make a transaction with your trading account in the secondary market, your Demat account is automatically credited or debited with shares. In the transaction summary, you will find your Demat account number. Due to the Demat account number, the need to hold physical securities has been eliminated.
Your Demat account number will be 16-digits if you have opened a Demat account For example, from CDS. If your Demat account number is 5687462156784568, then the 1st eight digits are assigned to DP, and the remaining eight are unique to you. If you open a Demat account with NSDL, your Demat Account Number will be 14-digits. It would look like IN45218695956564. The 1st 6-digits of the alphanumeric are assigned to the DP by NSDL. The rest are given to you and are unique to you.
It’s important to find Demat account numbers. It is useful, especially when you pledge your shares for a loan. I hope you find this article helpful to understand Where to find Demat account number? How to identify Demat account number?
Conclusion
Like your bank account number, the Demat account number is a crucial part of your investing journey. The Demat account number may be found in the Email you receive from the Central Depository when you open your Demat account. If your Demat and Trading accounts are connected, you can also find them in your Trading account. This number is only given to you by your DP after being verified. It is, in some ways, the face of your whole portfolio. To make trading easier, your DP associates your Demat account number with your Bank account number and Trading account number (if you have one). As a result, you must be fully aware of your Demat account number and ensure it does not fall into the wrong hands.
Frequently Asked Questions (FAQs)
Depositories are organizations that manage existing Demat accounts. They also provide new investors with Demat accounts. In India, there are 2 Depositories: the National Securities Depositories Limited (NSDL and the Central Depository Service Limited (CDSL). They also act as clearing houses and ensure that all transactions are successfully carried out. They follow regulations set by the Securities and Exchange Board of India (SEBI) according to the Depositories act of 1996.
Depository participants (DP) are middlemen who help investors open Demat accounts held by depositories. DP has the authority to make changes to Demat accounts on behalf of investors. A DP can be a stockbroker, a bank, or any Non-Banking Financial Entity. Some DP also assists in trading by providing a grading account.
BO ID stands for Beneficiary Owner Identification Number. BO ID is a unique number assigned to your Demat account. It helps you identify your Demat account, ensuring no two investors have the same account.
Your Demat account number or BO ID can get found on the email that you receive when you open your Demat account. You can ask your depository participant about it. If you utilize their app, you can check your Demat account number in the profile section. Another option is to fit it in your Consolidation Account Statement.
A Demat account number is by depositories. National Securities Depositories Limited (NSDL) issues a 14-digit Demat account number, whereas Central Depository Service Limited (CDSL) issues a 16-digit BO ID. Every Demat account number is unique, with the 1st 8-digits representing the depository participant and the remaining digits being unique to you. It is issued when you open a Demat account with NSDL or CDSL.
CAS stands for Consolidation Account Statement. It is beneficial to keep track of all your securities and investments. It provides complete information on everything that has happened to your Demat account for the specified period. You get the detailed information regarding all your Securities stored in the Demat account. You receive a monthly CAS by the 10th of every month for all transactions carried out in the previous month. It’s the best tool for keeping track of their complete portfolio.
Your Consolidation Account Statement is shared with you in your email. You should receive it on the 10th of every month containing all transactions done in the previous month. It is a monthly CAS that you should receive without fail.
If, by any chance, you have misplaced your welcome letter or do not remember your Demat account number, you can get in touch with your depository participant for it. IF you use their online app, you can check it in your profile. If you still cannot find it, you can directly contact your depository participant and ask them to provide your Demat account number.
No fine or charge should be levied on you for inquiring about your Demat account number. Your depository participant should assist you without much hassle.
Ideally, you should not divulge your Demat account number to anybody. The client ID of your Demat Account may be found using your Demat account number. And, because login credentials, such as the customer ID, are used as a security check, they must be kept private by you. Shares, bonds, and other securities may be held in your Demat account. As a result, you must safeguard its security, as account hacking, account mismanagement, illegal transactions, and other such activities are growing more widespread these days.
A Demat account is formed by combining the depository participant (DP) ID with the customer ID. The DP ID is a one-of-a-kind code assigned by the NSDL or CDSL to a DP such as a brokerage firm, bank, or financial institution.
You can find your Demat account number by contacting your Depository Participant (DP) and providing your PAN details for verification.
The Demat account number is a unique identification number assigned by the DP to each client’s Demat account for holding securities in electronic form.