The regulatory body – Securities Exchange Board of India (SEBI) has made it mandatory for all the brokerage firms in India to link aadhar with the demat account of their clients.
Those demat accounts which are not linked with aadhar will be deactivated until the client links the account with the 12 – digit aadhar number. The National Securities Depository Limited (NSDL) has made adequate provisions to link aadhar with the demat account via online. The process is very easy, simple and it allows investors to perform the linking task 24X7.
The online linking of Aadhar number with Demat account is one of the easiest and simplest methods and can be done via NSDL portal. One has to follow the below-mentioned procedure for linking:
Step 1: Visit the NSDL Portal and click on the “Click here to Link Aadhaar Number to Demat Account” option
Step 2: One can even visit Aadhar linking portal of NSDL (https://aadhaar.nsdl.com/AdhaarSeeding/) and click on the ‘Get Started’ button.
Step 3: Enter your DP Name, DP ID, Client ID and PAN followed by the verification code and click on ‘Proceed’.
Step 4: An OTP get generated and the same will be sent to the mobile number and email ID which is registered with NSDL.
Step 5: The complete details related to the demat account information will be displayed on the screen. If the displayed information is correct, click on the ‘Proceed’ button.
Step 6: Enter your Date of Birth, Gender, Aadhar number and ‘Proceed’ further
Step 7: An OTP will be sent to the mobile number which is registered with Aadhar.
Step 8: Enter the OTP number to authenticate the details and click on the “Submit” button.
Step 9: Your Demat account will be seeded with Aadhaar card and a confirmation message will be sent directly to your registered e-mail ID and mobile number.
The following are the list of benefits for seeding Aadhaar Card with Demat Account:
Investment in equity shares in the physical form is a lengthy process and involves a lot of paperwork apart from carrying the risk of getting fake shares. To keep the entire process of investing in shares easy and streamlined, a demat account is required. At the time of trading online, demat account comes in hand as it can be used to hold shares and securities in electronic or de-materialised format. Post dematerialisation, to increase the accessibility of shares, all the share certificates are converted from physical form to electronic form.
A demat account number is a must to settle trade electronically. A demat account helps to buy shares and stores them safely. It works similar to a bank account in which an account holder deposits money with a bank in his/her respective account and a record of debit or credit balances are maintained in a bank passbook. Similarly, when individual purchases or sells shares, it will be credited or debited to or from a demat account. The account can be used to hold a wide range of instruments like equity shares, debt funds, exchange-traded funds, government securities, mutual funds and so on. One can even open a demat account without possessing any shares in it by maintaining a zero balance in your account.