How to link Aadhaar Card with Demat Account Online?
All brokerage firms must link aadhar with demat account, per SEBI regulations. Accounts that are not connected to Aadhaar will be inactive until they are connected to a special 12-digit biometric identification number. To integrate investors' online Demat accounts with Aadhaar, NSDL has put in place the necessary procedures. Your Demat account can be linked to your Aadhaar number in a very straightforward manner which is detailed below.
It is less stressful to file the necessary paperwork for futures and options trading when Aadhar is linked to a Demat account. You can also receive quick and simple eKYC approval because your Aadhaar card is used to confirm all of your information. After Aadhaar seeding, investors would be able to easily change the brokerage business to suit their preferences. Also, it makes monitoring by authorities simple and promotes fraud prevention. After the Aadhar number is connected to the Demat account, investments made will be more transparent.
Steps for linking aadhar to 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 know how to link Aadhaar to 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.
List of documents to be kept handy while linking your Aadhaar Card with your Demat Account
- Aadhaar card
- DP ID, PAN, DP name, and other details related to your Demat account
- Keep your registered mobile close by so that you can check the OTP.
Advantages of linking your Aadhaar with the Demat
- Aadhaar and Demat account linking minimises the amount of paperwork needed for futures and options trading.
- Since your Aadhaar card is used to confirm all facts, eKYC approval is quick and simple.
- Demat accounts that are not connected to Aadhaar cards may eventually be deactivated.
- makes it possible for authorities to monitor easily, and it helps to stop fraud.
Importance of linking Aadhar Card with 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 linking, 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.
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.
Additional Read: Documents Required To Open A Demat Account
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.