How To Know Your Demat Account Number

A Demat Account is essential if you want to trade securities. With this account, you can invest in equities, currency, derivatives, commodities, and Mutual Funds. When you want to open a Demat Account, you must register with a Depository Participant (DP). Once registered, the Depository Participant will send you a 16-digit unique Demat account number. This number allows you to trade in different financial markets. To trade securities, you will also need a trading account linked with your Demat account to buy/sell securities in exchanges such as NSE, MCX, and BSE.

Depository Participants (DP) are the agent of a depository such as:

• National Securities Depository Limited (NSDL)

• Central Depository Services Limited (CDSL)

DP has the license to operate in the market. A depository issues this license under the provisions of The Depositories Act, 1996.
They have a unique DP ID assigned to them by CDSL or NSDL.

When new investors enter the stock market, they must approach a depository participant to open a Demat account. Shares purchased by the investor and the depository participant are held in this account. However, the investor remains the sole beneficial owner of the shares. The DP credits or debits finances whenever there is any buying or selling activity through this account.

You can read more about the DP and the charges here. 

To know your Demat number:

• Check the letter from your Depository Participant (DP) to find your Demat Account number, which is either from NSDL or CDSL.
  

• If it is from CDSL, your Account number, also known as Beneficiary Owner ID (BO ID), will be a 16-digit number.
  

• For NSDL letters, the number will start with 'IN' followed by a 14-digit number (e.g., IN47368696536797).
  

• CDSL numbers will be in a 16-digit format without a prefix (e.g., 1284653414677645).
  

• The first eight digits of your Demat Account number indicate the DP ID, while the remaining eight digits represent your unique client ID. 

The Demat Account number is a part of every transaction in the secondary market of India. The primary task of a Demat Account number is to remove the need to hold share certificates or other securities in a physical form. It substantially reduces the risk of theft and loss of securities. It also enables fast transfer of shares and securities between individuals.

First, you must choose a Securities and Exchange Board of India (SEBI) registered Depository Participant. After that, follow the steps given below.

• Step 1: Fill out the application form necessary to open a Demat Account.
  

• Step 2: Submit the required documents such as Aadhar card, PAN card and residential proof.
  

• Step 3: The brokerage firm will contact you for verification after submitting the documents.

Once the verification is done, you can access your Demat Account.

Click here to learn more about Demat Account charges or apply for a Demat Account at HDFC Bank.

*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in the securities market are subject to market risks; read all the related documents carefully before investing.