Demat accounts constitute a pivotal pillar of the stock trading mechanism in India. Since the introduction of dematerialisation in the securities market, demat accounts have revolutionised the access, process, and cost of trading.
You can open a demat account with one of two national depositories in India, namely, the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL).
It is mandatory to link your Aadhaar card with your demat account, and in this article, we shall discuss the steps to complete said linking.
How To Open A Demat Account
If you wish to trade or invest in stock in the securities market, you must open a demat account. You can select a credible depository participant (DP) and open demat account online. There are various types of demat accounts available for you to choose from, and you can select the best demat account with the lowest brokerage and the required features. Here are the major steps required to open a demat account online in India:
- Select an authorised depository participant or brokerage firm that offers demat accounts.
- Visit the selected DP or broker’s official website, and click on the option to open a demat account.
- Fill all the particulars in the online demat account opening form.
- Submit the demat account application form along with digital copies of your PAN card, proof of identity, proof of address, latest passport size photographs, bank details, and proof of income (if required).
- Complete the step of In-person Verification.
- Verify and complete your demat account application.
- Access your demat account once your DP or broker has shared the account login credentials.
Steps To Link Your Aadhaar Card With Your Demat Account
The Securities and Exchange Board of India (SEBI) has made it mandatory for a demat account to be linked with a valid Aadhaar card. As such, you must complete the process of linking your Aadhaar card and demat account. Here are the steps you must follow.
- Visit the official website of the NSDL.
- Locate the option for Aadhaar and demat linking and select it.
- Enter the required details, including your
- DP name and DP ID
- Demat account number
- Permanent Account Number
- Click on proceed to generate a One Time Password to be shared on your registered email address and mobile number.
- Enter the OTP received on your registered mobile number and email address.
- Enter your 12-digit Aadhaar card number.
- Check all the details; click on proceed to generate an OTP to be shared on your Aadhaar linked mobile number.
- Enter the aforementioned OTP and complete the process of Aadhaar card and demat account linking.
Key Documents Required For Aadhaar – Demat Linking
Before proceeding with the online process for linking your Aadhaar card with your demat account, you must keep the following documents and information handy.
- Your PAN card
- Your demat account number
- The name of your depository participant
Major Benefits Of Linking Your Aadhaar Card With Your Demat Account
There are several benefits of linking your Aadhaar card with your demat account, prominent amongst which are:
- Ease in completing further KYC and Re-KYC for your demat account
- Convenience of switching from one DP or brokerage house to another
- Compliance with SEBI regulations
To Sum It Up
By following the processes mentioned above, you can easily open a demat account and link your Aadhaar card with your demat account online.
While selecting a demat account, you must be mindful of your own investment requirements, account features, and account charges along with the credibility and past performance of the selected depository participant or stock broker. You can opt for the best demat account with the lowest brokerage or a Full Service Demat Account.