How to link Aadhaar Card with Demat Account Online?
Mr Dutt is keen on investing in the stock market. Mr Dutt began looking for different Depository Participants (DP) to open a Demat account. After shortlisting a few based on services and rates, he checked the documentation required and the process of opening the Demat account. One of them said the process is even more straightforward if you open the account using your Aadhar. How? Read ahead to know the online linking process.
What are the Demat account and Aadhar card?
A Demat account is a dematerialized account in which you keep your shares and other securities in electronic form. A Demat Account is compulsory to trade in the stock market. A Demat accounts function is similar to a bank account. However, instead of holding money, the Demat account has securities. That allows credit and debit of securities when you trade or invest.
On the other hand, Aadhaar is a 12-digit numeric unique identification number issued on behalf of the Government of India. It is facilitated by the Unique Identification Authority of India (UIDAI) (Please write the current name of this authority). It contains identifiable information of the person. Aadhaar is valid Anywhere in India. Aadhaar can be used as proof of identity and address well.
Additional Read: Features and benefits of a Demat Account
Demat account is -sufficient for holding securities. So then why should I link my Aadhar card with my Demat account? Is it compulsory?
Why link the Aadhar card with the Demat account?
The Securities Exchange Board of India (SEBI), India's capital market regulator, has mandated that all depository participants (DP) link their clients' Aadhar to their Demat accounts. Demat accounts not linked to Aadhar are not allowed for a transaction until the client links the account to Aadhar.
Linking the Demat account and Aadhar have evident advantages. These include:
- Because all details are authenticated using your Aadhaar card, e-KYC approval is quick and straightforward.
- After Aadhaar seeding, investors will be able to switch brokerage firms to suit their needs quickly.
- Allows capital market regulators to monitor efficiently and aids in the prevention of fraud.
Additional Read: ICICI Direct- Does linking Aadhar and PAN impact an investor's ability to invest
Steps to link Aadhar with Demat account:
The Aadhar- Demat linking service is available to you 24 hours a day, 7 days a week. The steps to be followed are-
- To link your Aadhaar number to your Demat account, go to the NSDL website and click the "Click Here to Link Aadhaar Number to Demat Account" option.
- Submit your DP ID, PAN information, Depository Participant's name and client ID.
- You will get an OTP on your registered mobile number and email address. Click the "Proceed" option after entering the verification code.
- Your Demat account information will now appear on the screen. Check the information and click the "Proceed" button if everything is correct.
- Then, enter your Aadhaar number, gender, and date of birth. Select "Proceed" from the drop-down menu.
- You will get an OTP on the mobile number associated with your Aadhaar after submitting the information.
While linking the Aadhar card, you must keep in mind that:
- To authenticate your Aadhar link with the Demat account, you must have your mobile number and email address linked to the depository.
- To authenticate using OTP-based verification, your mobile number must be linked to your Aadhaar.
- Before linking the account, note your DP Name, DP ID, PAN, and other pertinent information.
- To avoid hacking or phishing, avoid using public computers or shared internet connections while linking your Aadhaar with your Demat account.
Can I cross-check if the Aadhar card is linked with my Demat account?
You can see whether your Aadhaar has been successfully linked to your Demat account or not:
- You will have to visit the UIDAI webpage.
- Select Check Aadhaar Linked Account from the drop-down menu.
- Enter your 12-digits Aadhaar number.
- You will receive an OTP on your phone, which you must enter in the relevant field. You will be able to check all of your linked accounts with your Aadhaar, including the status of linking your Aadhaar with your Demat account.
Additional Read: Documents Required To Open A Demat Account
So, when you open a Demat account and link it to your Aadhaar, you comply with the directions of the securities market regulator. This procedure is in place to prevent fraudulent activities in the securities market. Thus, linking your Aadhar card and Demat account benefits, all parties involved.
1. Is it mandatory to link the Aadhar card with a Demat account?
Yes, as per the regulations laid down by the Securities Exchange Board of India (SEBI), all DPs must link ask their clients to link their Aadhar numbers to their Demat accounts. If you fail to do so, you will not be allowed to carry out any transaction through your Demat account.
2. How can I update my Aadhar card in ICICI Direct Demat?
Here are the steps to update your Aadhar card in your ICICI Direct Demat account:
- Go to the NSDL website and click on Link Aadhaar Number to Demat Account.
- Enter the DP ID and name, PAN Card Number, and client ID.
- An OTP will be sent to your registered mobile number and email address.
- Enter the OTP and click on Proceed.
- Confirm the information displayed on the screen and click on Proceed to continue.
- Enter your Aadhaar Card number, date of birth, and gender.
- Click on Proceed.
- You will get another OTP on your registered mobile number linked to your Aadhaar.
- Enter it and confirm the changes.
3. Can we open a Demat account with an Aadhar card?
Yes, you can open a Demat account with your Aadhare card. In fact, the Aadhar card, as per the regulations laid down by SEBI to carry out transactions in a Demat account.
4. How can I open a Demat account if Aadhaar is not linked with a mobile number?
You can open your Demat account offline by visiting the DP’s physical branch if your Aadhar is not linked to your mobile number. It may be advised to link your mobile number to your Aadhar as it can simplify various procedures for you and help you keep a tab of your finances with greater ease.
ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. Investments in securities market are subject to market risks, read all the related documents carefully before investing. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents are solely for informational and educational purpose.