Demat accounts – checking the account number and DP ID

Opening an online demat account is incredibly essential if you like investing in the share market. When you open the account, you are assigned a demat account number, which you can use to log-in to your account. This is a special number that you need to conduct trades online. The account can be opened with a depository participant. But most people are confused about where and how they can find this number. Before we find out how to check demat account number, we need to understand the meaning of a depository participant.

Depository Participant – meaning

A Depository Participant, often abbreviated and referred to as DP is essentially an agent of one of the two main depositories in India, which enable investors to open online demat accounts. The two main depositories in India are National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). Depository participants are essentially financial institutions like banks and brokerage firms that serve as a link between investors and the depositories or stock exchanges. They enable you to make your investments and park them safely in your demat account, from where you can also conduct your trades. The provisions of the Depositories Act of 1996 govern the relation of depositories with depository participants.

How to find Demat Account Number

When you open a demat account with a depository participant, you receive a welcome letter from the depository with which you open the account; either the CDSL or NSDL. The welcome letter is a document which features some important information, in which you will find a 16-digit number and your personal details like name, contact number etc. This 16 digit number is your demat account number and you can find it once you have opened your demat account online with any government authorized depository participant.

Demat account numbers are also referred to as Beneficiary Owner IDs or BO IDs, if you open your account with the CDSL depository. Also, the format of the demat account number depends on the depository with which the account is opened.

If you choose CDSL as your depository you will be assigned 16-digit numeric demat number; for example 1234567891011123. On the other hand if you choose NSDL as your depository you will be assigned a 14-digit numeric demat number, which begins with the letter ‘IN’; for example IN12345678910112.

Difference between DP ID and demat account number

Most investors think that the demat account number and depository participant identification number is the same, which is not actually the case. In fact the DP ID has no correlation whatsoever with the demat account holder.

The DP is essentially the number allocated to a depository participant (a brokerage firm, bank or a financial institution) by the NSDL and CDSL.

Your demat account number is usually a combination of this DP ID and your customer ID. Thus, the first 8 digits of your demat account number consist of your DP ID, while the last 8-digits of your demat account number consist of your customer ID.

For instance, if you are wondering how to find demat account number, you can conduct this simple exercise:

For CDSL, if are assigned the demat account number 1234567891011123, then your DP ID will be 12345678 while your customer ID number will be 91011123.

Similarly if are assigned the demat account number IN12345678910112, then your DP ID will be IN123456 and your customer ID number will be 78910112.

You can open a free demat account with any reputed depository participant in India. However, you need to pay an annual maintenance fee and brokerage charges as applicable upon conducting trades.

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