When you are in stock marketing, trading, investing, IPO, and even passwords, one thing that will show itself in front of you time and time again is the Demat account number.
You get a Demat account number when you open a Demat account, but then it becomes oblivion with the rest of the paperwork. But many situations demand this number, and it’s freakishly tough to find when needed.
To understand more about Demat accounts, what they do, why they are needed, and the benefits of a Demat account, you can refer to our earlier articles for in-depth information.
What is a Demat Account Number?
A Demat account is an account which holds your shares, bonds, and mutual funds and the unique id associated with this Demat account is called the Demat account number. This number is given to an investor when he opens the Demat account with the broker. It’s a 16-digit number, for example, 0830289746382097.
Demat Account Number is also BOID or Beneficiary Owner ID, which you can find in the Broker Agreement. If you have an online Demat account, you can find it on the online platform as well under account details.
The BOID or Demat Account Number is made by combining two numbers which are DP ID and Customer ID:
DP ID
The DP ID is the unique ID given to your Stock Broker by NSDL or CDSL, which are central and national security depositories. DP is the identification of the Depository Participant and is of 8 digits, for example, 12081601.
Customer ID
Customer ID is a unique 8-digit number given to an investor by the stockbroker when their Demat account is made, for example, 28967034. This helps the stockbroker identify you from their clientele.
Both combine, first DP ID and then Customer ID to create a Demat Account Number of 1208160128967034. You also see the Demat account number in the form of IN08160128967034 in the case of NSDL.
Why is the Demat Account Number Essential?
The Demat account number is essential in:
Buying and Selling of Shares
When you invest in stocks and buy or sell them in the stock market, this number is used to represent you. The Demat account number is used to send the shares you purchased in your Demat account.
The Demat account number is the only way the shares get credited or debited from your account. They are also used to cross-check your investment by the stockbroker once the shares are sold or bought.
Managing Multiple Demat Accounts
Are you holding multiple Demat accounts? It’s a fantastic way to differentiate and manage them. You can track investments done in different accounts. They are helpful when a wrong transaction happens; you will be asked to produce your Demat account number so the share can be linked to you.
Passwords and Verification
Demat account numbers verify if you lost your account or the stock broker ran away or committed fraud. Many official documents such as KYC and Broker Agreement are password locked with Demat account number.
Therefore, you should never share your Demat account number as it’s used as a login credential and can be used to hack your account.
Conclusion
You can find your Demat Account number in your account profile under details if you have an online Demat account. It will be different for different stockbrokers, but it’s mostly the case.
If you can find the Customer ID in your account profile, then you can search for the DP ID of your broker on the internet and combine them to produce your Demat account number.
