Mr. Dutt is enthusiastic about stock market investing. To register a Demat account, Mr. Dutt started exploring for various Depository Participants (DP). He examined the necessary paperwork and the Demat account opening procedure after narrowing the field of candidates based on services and prices. One of them claimed that utilizing your Aadhar card to open the account will make the procedure considerably simpler. How? To learn how to link online, continue reading.
What are an Aadhar card and a Demat account?
You can maintain your shares and other securities in electronic form in a dematerialized account, or “Demat account.” To trade on the stock market, you must have a Demat Account. Similar to how a bank account operates, so do Demat accounts. However, the Demat account contains securities rather than cash. This enables you to trade or invest with the ability to credit and debit securities.
Aadhaar, on the other hand, is a 12-digit unique identifying number that was created on behalf of the Indian government. The Unique Identification Authority of India (UIDAI) facilitates it (Please write the current name of this authority). It includes details that can be used to identify the person.
Why should the Aadhar card and Demat account be linked?
All depository participants (DP) are required by the Securities Exchange Board of India (SEBI), the country’s capital market regulator, to link their clients’ Aadhar to their Demat accounts. Transactions cannot be completed on Demat accounts that are not linked to Aadhar until the client does so.
There are clear benefits to linking your Demat account with Aadhar. These consist of:
- E-KYC approval is simple and quick because your Aadhaar card is used to confirm all information.
- Investors would be able to swiftly transfer brokerage firms to meet their needs after Aadhaar seeding.
- helps to avoid fraud and enables capital market regulators to monitor effectively.
How to connect an Aadhar card to a Demat account:
You have access to the Aadhar-Demat connecting service every single day of the week. The actions that must be taken are:
- Visit the NSDL website and select “Click Here to Link Aadhaar Number to Demat Account” to link your Aadhaar number to your Demat account.
- Send your DP ID, PAN details, customer ID, and name of the depository participant.
- Your registered email address and mobile number will both receive an OTP. After entering the verification code, select “Proceed.”
- The details of your Demat account will now show up on the screen. If everything is correct, double-check the data and press the “Proceed” button.
- Next, fill in your Aadhaar number, gender, and birthdate. Choose “Proceed.”
- Verify your Aadhar link with the Demat account to your mobile number and email address must be connected to the depository in order.
- Your mobile number needs to be connected to your Aadhaar in order to authenticate utilising OTP-based verification.
- Make a note of your DP Name, DP ID, PAN, and any other relevant information before attaching the account.
- Avoid connecting your Aadhaar to your Demat account using shared or public computers or internet connections to prevent hacking or phishing.
Can I double-check that my Demat account and the Aadhar card are connected?
If your Aadhaar has been successfully connected to your Demat account, you may check here:
- You must go to the UIDAI website.
- From the drop-down menu, choose Check Aadhaar Linked Account.
- Your 12-digit Aadhaar number must be entered.
- On your phone, you will receive an OTP that you must input in the appropriate field. You may monitor the status of integrating your Aadhaar to your Demat account as well as all of your other linked accounts.