How to know your Demat Account Number

Introduction to knowing your demat account number

A Demat account is a must-have when you want to trade in the stock market. Like a bank account stores your money, a Demat account stores the shares you purchase through a stock exchange. A Demat account streamlines equity, commodity, currency derivatives, and mutual funds investments. When you approach a Depository Participant ( stockbroker) to open a Demat account, the broker assigns you a 16-digit account number. This account number is known as Demat account number or Beneficiary Owner (BO) ID. Besides a Demat account, an investor also needs an online trading account to trade efficiently through exchanges like NSE, BSE, and MCX. You can also link multiple online trading accounts to one Demat account.

What is a Demat Account Number?

A Demat account number is a unique 16-digit number that makes it convenient for stockbrokers and investors to assess portfolios. In stock transactions and IPO applications, the 16-digit Demat account number serves as the investor's key identifier. When buying, shares are credited to the Demat account within T-2 days, and when selling, they are debited within T+2 days. This system ensures swift and accurate tracking of investor holdings, simplifying the stock exchange process.

A Demat account number is composed of two elements - the DP ID and the customer ID of the investor/ account holder. While depository institutions like CDSL or NSDL assign DP ID to brokers, banks, and financial institutions, and the customer ID is assigned by stockbrokers, banks, and financial institutions. So, if you ask, 'What is my Demat account number?,' the answer is - it is a combination of your customer ID and the DP ID. This is the reason why a Demat account number is also known as the DP account number. While the first eight (8) digits of your account number are the DP ID, the next eight (8) digits are your customer ID. Hence, if your NSDL Demat account number is IN01111178945612, IN011111 is the DP ID, and 78945612 is the customer ID.  
 

Demat Account Number Importance 

The Demat account number is incredibly important as it uniquely identifies you in the financial market. It's the key to buying and selling securities. Unlike your registered name, this number is specific to your investments, enabling stockbrokers to verify transactions in your Demat account.
Managing multiple Demat accounts without a distinct account number could complicate the process of segregating investments. Therefore, the Demat account number plays a crucial role in organizing and distinguishing investments across various accounts systematically. In case of discrepancies, this 16-digit identifier facilitates investors in seeking resolution by providing a unique identity for their Demat account.
 

Which Are The Two Demat Account Number Formats?

Generally, after you submit the documents required to open a Demat account, the Depository Participant sends you a welcome mail. The welcome mail contains a welcome message, vital information regarding your Demat account, and the number. If your account is opened with CDSL, the Beneficiary Owner ID will be a numeric 16-digit ID. However, if your account is opened with NSDL, your DP account number will start with IN. Hence, while a CDSL Demat account number may look like 1234567891011123, an NSDL Demat account number may look like IN34567891011123.

CDSL and NSDL - Know The Differences

You must have read about CDSL and NSDL many times in this market guide and might wonder what these are and the things they do. Here's what you need to know:

NSDL and CDSL are institutions approved by the Indian government to hold securities, bonds, and ETFs. NSDL or National Securities Depository Limited is the oldest depository institution in India. It is also one of the world's largest depository institutions. CDSL was established in 1999. 

NSDL generally deals with securities/ shares traded on the NSE (National Stock Exchange), whereas CDSL deals with securities/ shares traded on the BSE (Bombay Stock Exchange). NSDL is promoted by IDBI Bank, UTI, and NSE. CDSL is promoted by SBI, HDFC Bank, Bank of Baroda, Bank of India, Standard Chartered Bank and BSE.

Since depository institutions like CDSL and NSDL cannot reach out to the investors institutionally, they have impaneled several Depository Participants, such as 5paisa, to offer broking services to investors. A brokerage house acts as the intermediary between a depository institution and investors. They facilitate Demat account opening and provide a gateway for investors to access and invest in a wide range of investment instruments, such as equities, bonds, ETFs, mutual funds, etc. When you apply to open a Demat account, the brokerage house submits your application with NSDL/ CDSL and sends you the Demat or DP account number through the welcome mail. 
 

How Can I Get My Demat Account Number?

You must approach a DP or stockbroker to open a Demat account. To open a Demat account, you need to submit documents like PAN card, Aadhar card, photograph, and bank details. You can open an account both online and offline. 

After submitting the documents, the DP will verify your credentials and assign a unique 16-digit number known as the Demat account number. If your account is opened with CDSL your Account Number will be 1234567891011123,  If your account is opened with NSDL, your NSDL Demat account number may look like IN34567891011123. 

It is wise to note the number safely to quote it whenever applicable. For example, if you want to invest in an IPO (Initial Public Offering), the bank will ask for your Demat account number. The shares will be credited to your Demat account if you get the IPO allotment. When conducting transactions from your trading account, you can easily find your Demat Account Number listed in the transaction summary.
 

5paisa Simplifies Demat Account Opening

5paisa is a preferred destination for investors willing to open a Demat account conveniently. All you need to do is enter your PAN and Aadhar number and upload a selfie photograph to create an account quickly. Once your account is created, and your credentials are verified, you will get your free Demat account number at your fingertips. 

So, what are you waiting for? Click here to take your trading journey to new heights.