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Aadhaar Number is a unique identification number provided by the Government for various purposes. Essentially, it helps in authenticating your identity for availing benefits, subsidies etc. when you open a bank account, mutual fund account, demat account and PAN. Aadhaar protects you from fraudulent transactions and misuse of IDs to transfer money into the wrong hands. As part of this initiative, SEBI has made it mandatory for banks and financial institutions to link the demat accounts of their customers to Aadhaar Card.
About How to link Aadhaar Card to Demat Account
What is the process of linking Aadhaar Card to Demat Account?
The process of linking Aadhaar Card to Demat Account is fairly simple and easy. National Securities Depository Limited (NSDL) is responsible for securely linking demat accounts to Aadhaar card numbers of the investors. The actual process of connecting both is carried out on the NSDL website.
However, before initiating the linking between Aadhaar Card and Demat Account, it is advised to do the following:
- Your mobile number and email address must be registered/linked with NSDL. This is done for the purpose of self-authentication.
- Registered mobile number with the Aadhaar Card must be used to link the card with demat account. This is required due to OTP verification.
- Details such as DP Name, DP ID and PAN should be kept handy before starting the process.
- It is better to use a secure network to carry out this activity rather than a public network to prevent any insecure access.
The following steps will guide you in linking Aadhaar Card to Demat Account:
- Go to NSDL website and click on “Link Aadhaar with Demat Account” tab. This can be found on the home page itself.
- A new page will open up which shows the process of linking Aadhaar card and Demat Account. You may click on the “Getting Started” tab to start the process.
- You must enter the Demat Account Number (DP ID), Demat Account Holder’s Name, Client ID and PAN number.
- Enter the verification code provided and click on “Proceed”.
- An OTP will be generated and sent to your registered mobile number or email address available on NSDL records.
- Thereafter, the Demat Information will be shown on the screen for your verification. If the details shown are correct, you can process to link the account with Aadhaar Card.
- In this last step, authentication is carried out by NSDL. Upon successful completion of this step, your Aadhaar Card and Demat Account will be linked.
- A confirmation message of the linking process will be sent to your email address or mobile number.
Benefits of linking Aadhaar Card to Demat Account
When Demat Accounts are linked to Aadhaar Cards, the unique identification number brings about transparency in the system of financial transactions. Fraudulent activities and fake accounts are weeded out automatically. There are many benefits of linking Aadhaar Card to Demat Account. Some of the key points are mentioned below:
- Demat Accounts that are not linked to Aadhaar Account are considered to be fake and are automatically deactivated.
- KYC details are easily procured with the help of Aadhaar Card.
- It is possible to change the brokerage firm easily if the demat account is linked with Aadhaar Card.
- An indirect benefit of the above point is the increase in competition amongst the brokerage firms and possible reduction of brokerage charges.
- Transactions can be monitored and securely carried out.
- There will be more transparency in the investments done.
- The demat accounts will be easier to manage and hence, documentation for futures and options trading will also reduce to a great extent.
FAQs – How to link Aadhaar Card to Demat Account
1. Who authenticates the process of linking Aadhaar Card to Demat Account?
National Securities Depository Limited (NSDL) is responsible for executing the linking of Aadhaar Card to Demat Account. The process of linking is carried out on the NSDL website.
2. What details have to be kept ready before starting the process of linking Aadhaar Card to Demat Account?
Demat Account Number, Account Holder’s Name, Client ID and PAN Number must be kept handy before starting the process of linking Aadhaar Card to Demat Account.
3. Is it mandatory to link your Aadhaar Card and Demat Account?
Yes. As per the rules of SEBI, it is mandatory to link your Aadhaar Card and Demat Account. If the Demat Account is not linked with Aadhaar Number, the account is liable to be deactivated.
4. Does the Demat Account Holder get intimated on the confirmation of linking?
Yes, once the process of linking Aadhaar Card to Demat Account is completed on the NSDL website, a confirmation message is sent to the Demat Account Holder’s email address or registered mobile number.