How to Know Your Demat Account Number?
A demat account is as essential as a bank account because it opens up the opportunity to explore several investment avenues online. To invest in the capital market, an individual needs to open a demat account as well as a trading account. A demat account online enables the holder to hold equities, derivatives, currency, commodities, mutual funds, and more in their dematerialised format from the convenience of their homes.
Every individual interested in investing in the stock market is assigned a demat account number. This demat account number is associated with the individual’s demat account.
Before knowing how to find your demat account number online, it is important to know what exactly is a demat account number and what are its uses.
What is a Demat Account Number and Where Can You Find It?
When you open a demat account in India, you are assigned a number by your Depository Participant (DP), who is usually your broker, that enables you to trade stocks online. This unique 16-digit code is called your demat account number.
Also Read: How to Trade Stocks Online?
When you open a demat account online, you receive a welcome letter from your depository, either CDSL (Central Depository Securities Limited) or NSDL (National Securities Depository Limited), which contains your account information as well as your demat account number. In the case of CDSL, this demat account number is also called the Beneficiary Owner ID.
The format of the demat account number varies depending on CDSL or NSDL. With CDSL, your demat account is a 16-digit numeric code. In the case of NSDL, the number starts with “IN”, followed by a 14-digit numeric code.
Your demat account number online is a combination of your DP’s ID and your customer ID. The DP ID is assigned by the CDSL or NSDL to a broking firm, a bank, or a registered financial institution. The first eight characters of your demat account number represent your DP ID, and the following eight digits are your customer ID.
The Facilities Offered by a Demat Account
Having a demat account online helps to streamline the experience of investing in the stock market. When you open a demat account, you can eliminate the worries of damaging your shares and securities and getting fake shares, as all your investments in the capital market are stored electronically in a demat account online. You will need your demat account number online to settle trades electronically. Following are some of the facilities offered when you open a demat account: -
- Share Transfer: With a demat account in India, you can transfer your shareholdings using a delivery instruction slip.
- Undertake Loans: You can pledge the securities in your demat account as collateral to get loans from the bank.
- Dematerialisation and Re-materialisation: When you open a demat account, you can easily convert your physical shares into electronic ones and conversely get the electronic securities in the physical form as per your needs.
- Varied Access: Varied Access: With a demat account online, you can invest, trade, and monitor your securities from anywhere in the world if you have access to the internet.
- Corporate Gains: When you have a demat account online, a company’s dividends, interest, or refunds to its investors get credited directly to your demat account. Corporate actions such as stock split, right shares, or bonus issues are automatically updated in your demat account online.
- Account Freezing: Account holders with a specific amount of shares have the option to freeze their demat account for some time to avoid any unpredicted debit or credit.
There are several benefits of having a demat account in India as it allows you to seamlessly explore the capital market for investments anytime, anywhere. Once you open a demat account, you can check your demat account number after logging into your account.
Also Read: Things You Need to Know About Zero Balance Demat Account
Share Market Knowledge Centre
- Demat account
- Share market
- Trading account
- Online share trading
- Intraday trading
- Futures trading
- Commodities trading
- Currency trading
How to Choose the Best Demat Account?
If you are only looking for the best Demat Account in India, then we would urge you to modify your search and start looking for the best Demat Account for YOU. Every investor is unique and has specific trading and investment requirements. And, the Demat Account must be able to cater to your specific needs. In this article, we will offer some tips to help you choose the best Demat Account in India for your specific needs.
How Does Demat Account Work?
The stock market has witnessed a fascinating evolution. From close to a hundred years of traders ardently shouting on the trading floors to buy and sell shares, the capital market has become more accessible to investors with the introduction of a demat account in India.
Eligibility Criteria to Open a Demat Account
To invest in the capital market, you first need to open a demat account, and to do so, you need to meet the necessary criteria to open a demat account. While trading in the stock market, an investor needs to essentially concern themselves with three accounts: the bank account, the demat account, and the trading account.
Frequently Asked Questions
DP ID stands for Depository Participant Identification, and it is often wrongly confused with the demat account number. The DP ID is allotted by the CDSL and the NSDL to the depository participant such as a broking firm, a bank, or a financial institution.
Whereas when you open a demat account, you are given a demat account number online, which is a combination of the DP ID and the customer ID. The first eight digits of your demat account in India represent the Depository Participant, and the last eight digits are your unique customer ID.
Before you finalise the brokering firm or the financial institution for trading and investing in the capital market, it is important to know whether they deal with CDSL or NSDL. CDSL stands for Central Depository Securities Limited, whereas NSDL is short for National Securities Depository Limited.
The NSDL only deals with the securities traded on the National Stock Exchange, while the CDSL is associated with the Bombay Stock Exchange (BSE). Both the CDSL and the NDSL are headquartered in Mumbai.
Depository Participants (DP) can be thought of as the agents of the depositories that act as a bridge between investors and the stock exchange. They are usually brokerage firms, banks, and other financial institutions.