The digitalisation of online trading has made trading seamless and affordable for the common people of India. According to the regulations set by the Securities and Exchange Board of India (SEBI), all investors, whether retail or joint, must link their Aadhaar number. The SEBI has clearly stated the guidelines for all stockbrokers to deactivate the Demat account, which is not linked to an Aadhaar card.
To avoid this situation, you must know how to link your Aadhaar card with a Demat account. With the speed of technology, it is easy to link your Aadhaar card to your Demat account without going to a government office. Through depository participants (DPs), you can open a Demat account on the Central Depository Services Limited (CDSL) and the National Securities Depository Limited (NSDL).
To start with, we need to know more about the Aadhar number, which is a twelve-digit number issued by the Unique Identification Authority of India (UIDAI).
If you don’t have an Aadhaar card, you can get it made for free at an authorised Aadhaar centre. To make your Aadhaar card, you need to provide your name, date of birth (DOB), and other details along with your birth certificate, ration card, and utility bills. The authorities verify these documents along with your biometrics, iris scans, and facial photographs.
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Steps to Link Aadhaar Card with Demat Account Online
The process of linking your Aadhaar card with your Demat account will take a little of your time. Once you are done, it will help you to control your Demat account efficiently. Follow the steps mentioned below to link an Aadhaar card with a Demat account:
Step 1: Visit the NSDL portal and click on the button that states ‘Click here to link Aadhaar number to Demat account’.
Step 2: Another option is to visit the Aadhaar linking portal of NSDL, which is directly connected through the NSDL website, and click on the ‘Get Started’ button.
Step 3: Enter your client ID, DP name, DP ID, and PAN. Press the verification button and proceed further.
Step 4: An OTP is generated and shared with your registered mobile number and email ID. Enter the OTP to proceed.
Step 5: Verify your Demat account information, which is displayed on the NSDL website.
Step 6: After the DOB and gender, mention your Aadhaar number and click on the proceed button.
Step 7: Request an OTP for Aadhaar verification.
Step 8: Enter the OTP, link your Aadhaar card with your Demat account, and get the confirmation message that will be sent to your registered email and mobile number.
The verification process will be audited by a regulatory body, such as SEBI .
Documents You Need to Keep Handy
You will have to keep the following list of documents beside you:
- PAN card
- Income proof
- Aadhaar card
- A cancelled cheque
- Bank statement
- Passport-size photographs
Benefits of Linking a Demat Account to Your Aadhar Card
As a stock investor, you understand the importance of opening a Demat account. Here are some benefits of linking your Aadhaar card with your Demat account:
- You don’t need to submit a physical document for accessing Futures and Options accounts.
- Fast and simple eKYC approval, as all the details are authenticated through your Aadhar card verification.
- Investors can easily switch or open multiple Demat accounts through their registered Aadhaar card.
- It enables easy monitoring and recovery of passwords.
- There will be transparency in your investments and Demat account activity.
- A Demat account that is not linked to Aadhaar cards can be deactivated or frozen after a certain period.
- The SEBI and government regulators will monitor your Demat to ensure that you are not involved in any fraud and that your online trading is clear.
Conclusion
A Demat account is like a savings bank account, but in place of funds, you are storing your financial assets, which you can buy and sell online. Demat stores your financial assets in digital format. Apart from storing, you also get a safe path to transfer your securities to the stock market or other Demat accounts. With an online Demat account, you can invest in mutual funds, Exchange-Traded Funds (ETFs), Initial Public Offering (IPO), bonds, shares, and Futures and Options (F&O).
Opening a Demat account is essential for trading. If your Demat account is linked to your Aadhaar Card, you can have more control and authority over your Demat account. To start trading, you need to partner with a broker who provides you with excellent research and has a high reputation among its customers.
The Share India platform has tons of features and advanced technological trading software. To explore, download the Share India share market app now.
