If you wish to invest in stocks and other derivatives, you must have a Demat account. With a Demat account, otherwise called a Dematerialised account, you can easily store your shares in electronic form and trade them online. With this, you wouldn’t have to keep physical share certificates, which are prone to theft and loss.
Your Demat account is linked to your bank account and trading account to make transactions hassle-free. But how can you find the Demat account number? Worry not, it’s not a big deal!
With this brief guide, understand the significance of your Demat account and how to know your Demat account number in simple steps.
What is a Demat Account?
Before we get into the topic, let’s first learn the fundamentals of a Demat account. In simple terms, a Demat account is an electronic account where you store your stocks, mutual funds, and bonds in a digital format. If you wish to trade in the Indian stock market, you need to have a Demat account as it would allow you to buy and sell shares easily without dealing with paper certificates.
When you open a Demat account, you are provided with a unique ID. This ID is very important as you need it to make transactions in the stock market. You can open a Demat account with a financial institution or a broker. These firms are called depository participants (DP) and would serve as a link between you and the depository. In India, there are two main depositories - the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL).
How to Know Your Demat Account Number
Here are the ways to find your Demat account number:
Method 1: Check Your Welcome Letter:
When you open your Demat account, you receive a welcome letter from your DP and this letter has your Demat account number.
Method 2: Look for the Format:
If your Demat account is with CDSL, your account number would be a 16-digit Beneficiary Owner ID (BO ID). If it is with NSDL, your account number would have 14 digits followed by the letters ‘IN’.
Method 3: Trading Account:
You can also find your Demat account number in the transaction summary or the profile details of your trading account.
Alternative Methods On How to Find Demat Account Number
If you cannot find the Demat account number with the above-mentioned methods, you can also check the following methods:
- Internet Banking: If your Demat account is linked to your bank account, you can check your account details via Internet banking.
- Customer Support: If nothing works for you, you can contact your brokerage firm’s customer support to get your Demat account number.
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How to Know Demat Account Number Using PAN Card
You need your PAN Card to open a Demat account in India. So, when your PAN Card is linked with your Demat account, why not use it to find the Demat account details, including your Demat account number? Here’s what you need to do to find your Demat account number from PAN:
Step 1: Visit Your DP’s Online Portal: Go to the website of your depository participant.
Step 2: Find “Retrieve Demat Account Number”: Look for an option to retrieve your Demat Account Number using your PAN
Step 2: Enter Your PAN Details: Enter your PAN card number as required.
Step 4: Submit: After submitting your PAN, get your Demat Account Number displayed on the screen.
Why is Knowing Your Demat Account Number Important?
Though several reasons have already been discussed previously, here are the main reasons why you should know your Demat account number:
- Required for transactions
- Simplifies the process of transferring shares and securities
- Keeps your investments safe
Why Your Demat Account Number Matters
Here are certain reasons why a Demat account number is important:
- It provides a unique ID and helps identify your account.
- A Demat account number is required for transactions as it ensures that the shares you are trading go to the right account.
- This number serves as proof of ownership since it shows that you own the securities in your account.
Format of the Demat Account Number
As mentioned earlier, there are two depositories - CDSL and NSDL. Hence, the format of your Demat account number depends on whether you have a CDSL account or an NSDL account.
So, for accounts with CDSL, the Demat Account Number has a specific structure:
- Length: 16 digits
- First 8 Digits: This is your Depository Participant (DP) ID showing which bank or broker holds your account.
- Last 8 Digits: Refers to your customer ID with that broker.
If you have an NSDL account, then the Demat Account Number looks like this:
- Format: It starts with "IN" followed by a total of 14 digits.
- First 2 Letters: "IN" shows that this account is with NSDL.
- Next 6 Digits: This is your DP ID showing your broker or bank.
- Last 6 Digits: Refers to your customer ID with NSDL.
Conclusion
If you want to keep your investments safe and carry out trading transactions easily, then make sure you know your Demat account number.
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Download the app and enjoy investing!
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