All About Demat Account Number & DP ID
Opening a demat account online is one of the best decisions you can ever take as an investor. After all, there are a number of benefits associated with having such an account. It has revolutionised the way trading is done ever since its inception in 1996. For those who don’t know, a demat account is an online platform which allows users to buy and sell stocks and shares very conveniently. People no longer have to worry about their shares getting stolen or damaged. Additionally, demat accounts have also eliminated the threat of counterfeit certificates. Not long ago, investing in shares was a tedious process which involved a lot of paperwork. But, thanks to technology investing has now become extremely convenient and efficient.
A demat account is very similar to your bank account. Record of your credit/debit balances are maintained in the same way your bank records are entered in your passbook. Your demat account can be utilised for holding several kinds of investments like government securities, bonds, mutual funds, exchange traded funds and equity shares. Another major advantage is that they are zero balance accounts. In other words, there is no minimum balance requirement. Also, you could open a demat account without possessing any shares.
Storing physical securities and keeping tab of their performance is an arduous task. But, with the help of demat accounts investors can track all their investments with just a click of a button. Besides, it also helps customers save a lot of time. There are several supplementary costs associated with physical certificates such as stamp duty, handling charges, etc. These extra expenses will not be applied to your demat account. Previously, investors could only buy and sell conservatively as the process was time-consuming and required a ton of paperwork. Today, customers can trade freely by simply using a smart device.
Your DP will assign a distinct 16-digit number to your demat account . After this, your account will be functional. Soon, you will receive a welcome letter from the depository (NSDL or CDSL) which will contain all the important information including your demat account number. If you receive the letter from CDSL, then your demat account number will be called Beneficiary Owner ID or BO ID. Remember, your demat account format will vary based on the depository.
In case of CDSL, your account number will be of a 16-digit numeric character, which will begin with ‘IN’ followed by a 14-digit numeric code, if your depository is NSDL. For example, your CDSL demat account number can be 0123456789101112 and your NSDL account number could be IN12345678910112.
A DP sometimes can also be referred to as an Agent of the Depository. DPs are usually financial institutions, brokerage firms and banks who function as a link between the stock exchanges and the investors. The relationship between the DP and the depository is governed and regulated by the provisions in the Depositories Act, 1996.
Difference Between Demat Account Number & DP ID
First of all, both these numbers have got nothing to do with the demat account holder. DP ID – also known as the Depository Participant Identification – is a number assigned to the Depository Participant such as a bank, financial institution and broking firm by the NSDL and CDSL. Secondly, a demat account number is usually a combination of the customer ID and the DP ID of the demat account holder. Usually, your DP ID is the initial 8-digits of your demat account number, whereas your customer ID is the latter 8-digits of your demat account number.
Here is a simply exercise that will help you figure out your demat account number. For example, if your demat account number for CDSL is 0123456789101112, then your DP ID is 01234567 and your customer ID is 789101112. Likewise, if your demat account number for NSDL is IN01234567891112, then your DP ID is IN012345 and your customer ID is 67891112.
So, what are you waiting for? Now that you have all the information, go ahead and open demat account online with 电竞娱乐平台 today and enjoy unlimited trading at just INR 20.