Details about Demat account number that you need to know

Demat accounts are mandatory for people interested in investing in the share market. As per RBI regulations, you can no longer hold your shares in physical form and you should conduct all your trading activities in dematerialised or ‘electronic’ form. These accounts are offered by investment brokerage firms and you need to log in to it to place orders to purchase or sell your market investments. But do you know the nuances of operating the account – things like what the account and account number is and how to check demat account number? Here’s a guide to help you.

What is a demat account?
Investors interested in carrying out their share market investments via the electronic route need to open a demat account. This account is just like your savings bank account. However, instead of holding cash, you can securely hold your various market investments; shares, mutual funds, exchange traded funds, government bonds and other such money market instruments in this account, in the electronic form. All transactions should be conducted online, electronically by logging into the account. This is why this account is also known as an online demat account.

Demat account number – the definition
Every demat account you open comes with a unique code, instead of your name. This unique code is known as the demat account number. The format of your demat account differs, depending on the depository authority assigning it – whether it is National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL). While the first few letters are assigned as per the depository authority assigning the account, the remaining letters are unique to each investor, which should be used while carrying out trading transactions.

Finding the Demat Account Number
Before you can understand how to find demat account number, you need to know that the demat account involves two entities – the depository authority (CDSL and NSDL as mentioned above) and the Depository Participant (DP). The DP is the bank or the brokerage firm offering you demat account services.

When you open the account, the DP sends a welcome kit. The depository authority is assigned randomly, and it could either be CDSL or NDSL, depending on your DP brokerage firm. It is in this welcome kit that you can check your demat account number.

The demat account number is a 16 characters number. This unique number is known as the Beneficiary Owner IDs or BO ID number, if your depository is CDSL. The depository assigned to you plays an important role in helping you find your account number. Here’s a simple trick on how to check demat account number.
•    If your depository is CDSL, your demat number will only consist of 16 digits for example 1234567891011123.
•    If your DP assigns NSDL as your depository, then your demat number will have both, letters and numbers. The account will begin with the letters IN, followed by 14 digits. As such, your demat account number could look something like IN12345678910112, for instance.

Free services

Many DPs in India offer free demat account to first time investors. You do not have to pay any fees for opening the account. However, you may be charged an annual account maintenance fee and the charges per transaction made through the account may be high, so you need to check the DP’s terms and conditions before opening the account.
Final word: Online demat accounts have truly simplified the way in which online market transactions are conducted. Apart from placing orders, you can also monitor and review the performance of your investments through these accounts. You can also open multiple demat accounts.

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