Looking to invest in stock markets? then you have to meet some regulatory criteria. Foremost, is to link your Aadhaar with Demat Account. Among the many documents that you need to link to your Aadhar card, the demat account is one of them. The demat account is where you hold your shares and other securities like bonds, ETFs, gold funds etc in electronic form. This is a much more convenient and fool proof way of holding your shares compared to the traditional physical method. But is it mandatory to link Aadhar with demats account. You must have got calls from your broker or your DP to go ahead and link your Aadhar number with your demat account. Let us understand how to link Aadhar number with demat account online.
It needs to be remembered that SEBI has made it mandatory for all brokerage firms and DPs to link Aadhaar with demat account of their clients. Accounts that are not linked with Aadhaar would be eventually deactivated. The depositories, NSDL and CDSL have made adequate provisions to link Aadhaar number with demat account of investors online. This process is simple and also allows investors to perform the task from anywhere and at any time.
How to link your demat account and Aadhar Number?
The simplest method to link Aadhaar number with demat account is through the NSDL portal. Here are the simple steps that you need to take:
- To begin with you can visit NSDL’s Portal and click on the Link Aadhaar Number to Demat Account option.
- You can also alternatively visit the Aadhaar linking portal of NSDL directly through https://aadhaar.nsdl.com/AdhaarSeeding/ and embark on the process of linking your Aadhar card to your demat account.
- The first step is to enter your DP Name, DP ID, Client ID and PAN. Once that is done you can enter the verification code and proceed.
- As is the normal practice with all Aadhar linking transactions, an OTP (One time password) will generated and sent to the mobile number and email id registered with the depository. Ensure that both your mobile and email are registered since this is normally a two factor authentication.
- Once the OTP verification is completed, you can check your complete demat account information is displayed on the screen. If all the information is correct, you will have to confirm by pressing a button and you can proceed.
- The next step is to enter your DOB, gender and 12-digit Aadhaar number and Proceed. Ensure that your date of birth in the documents submitted for demats and your Aadhar card is perfectly matching as otherwise your request will be rejected. At this stage, an OTP will be sent to the mobile number registered with Aadhaar.
- Once you enter the OTP to authenticate your details and click on the “Submit” button, your demat account will be linked with your Aadhaar card and a confirmation message will be sent both to your registered email id and mobile number.
Some key preparatory points to be kept in mind
- Ensure that your mobile number and email id should be linked with NSDL to authenticate yourself and also ensure that your mobile number should be registered with your Aadhaar to authenticate using the OTP-based verification.
- Also ensure to keep DP Name, DP ID, PAN and other details ready on hand before linking the account. Since you are accessing confidential information ensure that you don’t use a public cyber café computer or even a public wi-fi.
What are the advantages of linking your Aadhar number and Demat account online?
- Once your linking of Aadhaar number is done, it allows you get e-KYC done quite easily as your details can be authenticated using your Aadhaar number.
- As per the government stipulation, accounts that are not linked with Aadhaar will be deactivated instantly after the completion of the deadline.
- It will be easier for the investment regulator to monitor transactions and prevent fraudulent activities. This will bring about greater transparency in investment making the markets safer and more secure.
Related Blogs: Check the difference between Demat and Trading Account | When can you have a demat account without a trading account? | Factors to consider when opening a demat account
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