A step-by-step guide to link Aadhaar with demat account
Investing in the stock market comes with certain statutory requirements which you as an investor must adhere to. The market regulator, SEBI, has made it mandatory for brokerage firms to link the Aadhaar number of their customers with their demat accounts. Demat accounts not linked to aadhaar will not be able to transact securities until the investor links both accounts. Hence, the depositories NSDL and CDSL have set up procedures for the linking of Aadhaar to demat accounts.
Steps to link Aadhaar with demat account
You can link Aadhaar with a demat account by following a few easy steps:
Visit the NSDL or CDSL web portal and go to the "Click Here to Link Aadhaar Number to Demat Account" option.
Provide the required details such as the DP name, DP ID, client ID, and PAN and proceed.
Enter the OTP received on your registered mobile number and email id.
You will now be able to view the details of your online demat account. Cross-check all the information for any discrepancies and proceed.
Now, you can view the option to enter the Aadhaar number, gender, and date of birth. Select Proceed from the drop-down menu after entering the above-mentioned details.
You will receive an OTP on the mobile number that is linked to your Aadhaar number. Enter OTP and click on Submit.
You will receive an SMS and email notification confirming that your Aadhaar number has been linked to your demat account.
Benefits of linking Aadhaar with demat account
Linking the demat account and Aadhaar offers the following benefits:
It makes the process of e-KYC faster and more robust as all the required authentications are done using your Aadhaar card.
As an investor, you may choose to switch to a brokerage firm that is best suited to your needs. After linking Aadhaar, you will be able to make a smooth and quick transition to another brokerage firm.
It also enables market regulators to serve you efficiently by monitoring accounts linked to abnormal market transactions and preventing the misuse of demat accounts.
Things to keep in mind before linking Aadhaar with demat account
The name on your Aadhaar card must match your demat account name for the UIDAI authentication to be successful.
Your mobile number and email address must be linked to the depository to verify your Aadhaar details when linking with the demat account.
Your mobile number needs to be linked with your Aadhaar to authenticate via OTP-based verification.
Make a note of your DP Name, DP ID, PAN, and any other relevant information before you start linking the account.
Avoid linking your Aadhaar to your demat account using shared or public computers or internet connections to prevent hacking or phishing.
Conclusion
You can start hassle-free trading in stocks and securities after linking your Aadhaar number with your demat account. It is essential to choose a dependable financial partner that can offer you a user-friendly trading platform and prompt customer service. For a seamless trading and investing experience, you can explore m.Stock which offers the opportunity to trade in delivery, IPO, Mutual Funds etc at zero brokerage.
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FAQ
Is it compulsory to link my aadhaar with my demat account?
Yes, the Securities Board Exchange of India (SEBI) has made it compulsory to link Aadhaar card with a demat account. If you fail to comply, you will be restricted from carrying out any transaction through your demat account.
Which documents are required to link Aadhaar with a demat online?
You need an Aadhaar number, PAN card details, a demat account number, client ID, depository participant (DP) ID, and access to your phone for the OTP to link your Aadhaar number to your demat account online.
How to check if your Aadhaar is linked with your demat account?
You can check whether your aadhaar has been successfully linked to your demat account by following the below steps:
Visit the UIDAI webpage.
Select “Check Aadhaar Linked Account” from the drop-down menu.
Enter your 12-digit Aadhaar number.
Enter the OTP you received on your registered phone.
You can now view the status of linking your Aadhaar to your demat account as well as all of your other Aadhaar-linked accounts.
Can you link Aadhaar at the time of opening a demat account?
Yes, you can link your Aadhaar number at the time of opening a demat account. In fact, it is mandatory to link the Aadhaar number, as per the regulations laid down by SEBI, to carry out transactions in a demat account.
How to open a demat account if the Aadhaar is not linked to the mobile number?
In case your Aadhaar is not linked to your mobile number, you can open your demat account offline by visiting a physical branch of DP. Linking your mobile phone to your Aadhaar is advisable as it would simplify the process of opening and operating your demat account.