Aadhaar and Demat linking: If the demat account is not linked with Aadhaar, it will be considered as fake and will be closed immediately after the stipulated time period.
Aadhaar and Demat linking: If you have opened a demat account or you are already a demat account holder, then you can link it to Aadhaar online from home. There are many benefits of linking demat to Aadhaar, which makes your trading process smooth and secure.
SEBI has made it mandatory to link demat account to Aadhaar. If your demat account is not linked to Aadhaar, then the broker will have to freeze that account and no transaction will be possible until Aadhaar is linked. Therefore, if you invest in the stock market, then link your demat account to Aadhaar as soon as possible so that there is no interruption in your trading.
If you want to link demat account to Aadhaar, then you can get your work done quickly by following these easy steps.
How to link online
- Go to the official website of NSDL (www.nsdl.co.in) or CDSL (www.cdslindia.com).
- There, choose the option to link Aadhaar to demat account and click on the given link.
- Now you have to fill details like DP name, DP ID, client ID and PAN number.
- On submitting the information, you will get OTP on the registered mobile and email. Enter it on the website.
- After this, the details of the demat account will appear on the screen. You will have to verify information like name, address, mobile number, linked bank account and email.
- Then enter Aadhaar number, gender and date of birth and proceed.
- Now enter the OTP coming from UIDAI and click on the submit button.
- As soon as the process is completed, you will get confirmation through SMS and email.
Documents required to link Aadhaar to Demat
If you want to link your Aadhaar number to your Demat account, keep some important documents ready before starting the online process. These include Aadhaar card, PAN card, access to Demat account details (DP ID and client ID), registered mobile number and email ID. If you have all these, the entire process can be completed in 10 minutes.
Benefits of linking demat account with Aadhaar
- If the demat account is not linked to Aadhaar, it will be considered fake and will be closed immediately after the stipulated time limit. Therefore, it is important for investors to link their account with Aadhaar.
- The process of linking Aadhaar is very easy and it will also make it easier to fill e-KYC, as the details will be automatically verified with the Aadhaar number.
- It is also a big advantage for investors that they can easily change their brokerage firm after linking Aadhaar. This will increase competition in the investment sector and brokerage charges are likely to come down.
- Apart from this, it will be easier for the investment regulator to monitor transactions, which will prevent cases of fraud. This will make the investment process more transparent and secure, which will also make transactions easier.
- Increasing transparency in investment will bring more people to the market and benefit the industry. Along with this, the documentation process for options and futures trading will also be reduced, which will make account management easier for new and old investors.
Benefits of opening a Demat account: Why is it important for investors?
If you invest in the stock market, then having a Demat account is very important. According to SEBI rules, it has been made mandatory for all listed shares to be settled in demat mode. Although transactions of up to 500 shares can be done in physical form, but due to problems like signature mismatch, forgery and fake certificates, physical share transactions have almost ended now.
Benefits of Demat Account
Safe and convenient: Demat account is safer and easier than keeping physical shares.
No stamp duty: There is no stamp duty on transferring shares kept in demat.
Fast share transfer: Instant transfer maintains liquidity.
No risk of fraud: Problems like theft, forgery and loss are eliminated.
All changes in a single instruction: Address change or power of attorney registration is done just by informing the DP (Depository Participant) once.
No odd-lot problem: The problem of odd-lot is eliminated due to the lot size of 1 share in the market.
Freedom from paper work: Many shares can be transferred through a single delivery instruction, which eliminates the need to fill forms again and again.
Loan facility: Loan or advance can be easily taken against shares kept in demat.
Benefit of Bonus and Rights Shares: Bonus, new shares received through rights issues and IPOs are directly credited to the demat account.
