How do I know my demat account number?
Before we explore how to know the demat account number, let’s take a closer look at what is a demat account. For starters, a demat account is just like a bank account. The primary difference between a bank account and a demat account is that a demat account is used to hold the shares and securities of an investor in an electronic format.
The term ‘demat’ stands for dematerialized, i.e. the substitution of physical records or certificates with a paperless computerized system. The purpose of opening a demat account is to make the online trading in the stock market easier for investors.
A demat account or dematerialized account facilitates the holding of shares and securities in an electronic format. With a demat account, an investor no longer needs to worry about the complex paperwork involved in investing. As the need to store physical records of investment documents is eliminated, the risk of losing valuable papers reduces to a great deal. In addition, a demat account reduces the overall transaction expenses incurred by investors, besides enabling them to work from anywhere. Demat accounts also allow the immediate transfer of securities, in turn saving time and money for investors. Did you know that an investor needs only one demat account to hold both equity and debt investments? These are some of the perks that an investor enjoys on having a demat account in place.
Now that we have understood what a demat account is, let’s move on to how to know your demat number. Your demat account number will be a combination of your Depository Participant Identification (DP ID) and your customer ID. Typically, the first 8 digits of your demat account number is your DP ID and the last 8 digits is the customer ID of the account holder. Once you have opened a demat account through a Depository Participant (DP), you’ll receive a unique account number called a Beneficiary Owner Identification Number (BOID) that will be used in future for all transactions.
Simply put, every demat account will have its own unique 16-digit demat number assigned by the DP to the demat account holder. Once an investor opens his or her demat account, he/she will receive a welcome letter from the depository, such as the Central Depository Services Limited (CDSL) or the National Securities Depository Limited (NSDL). This letter will contain all the account information including the demat account number. The Beneficiary Owner ID or BOID is also known as the demat account number.
What you need to remember is that the demat account number and DP ID is not the same. The DP ID is a number allocated by the CDSL and NSDL to a depository participant such as a brokerage firm or other financial institutions such as a bank. It is also important to note that the format of a Demat account varies for in the case of both CDSL and NSDL. For CSDL, the Demat account number is a 16-digit numeric character. On the other hand, in the case of NSDL, the Demat account number starts with “IN” followed by a 14-digit numeric code. Let’s consider an example to understand this better. An example of a Demat account number is CDSL may be 0987654321234567. An example of a Demat number for NSDL can be IN78909876543210.
Now let’s look at the Demat number in terms of being a combination of the DP ID and your customer ID. If you are confused about your Demat account, wondering how to find your Demat account number, here is an easy way for you to find out. In case of CDSL, let’s say your Demat account number is 0987654321234567. In this case, 09876543 is your DP ID and 21234567 is your customer ID. Similarly, for NSDL, if your Demat account number is IN78909876543210, in that case, IN789098 is the DP ID and 76543210 is your customer ID.
ICICIdirect account holders can check their demat account number after logging into their trading account. You can visit the demat allocation section or click your name on top in the website to know your demat account number.
Disclaimer: The contents herein mentioned are solely for informational purpose and shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.