Link Demat Account Overview
A Demat account is a financial account that helps people in trading and holding in an electronic format. It’s a best alternative for physical share certificates and other financial instruments. The aim of Demat account is to provide secure and safe trading, holding and transferring of many different securities and also exchange-traded funds (ETFs).
Demat has become very famous world wide, as it’s a standard method for holding and transacting in securities. In many countries, including India, this method has replaced traditional physical share certificates practice which had a lot of limitations and issues like loss, transfer delay, theft and more.
One needs to register with a Depository Participant (DP) to open a Demat account, as it’s a type of intermediate between the investor and the depository. The depository agency maintains records and facilities electronic transfer.
Once you successfully open your Demat account, you can enjoy the service of electronically credit of your securities holdings to your account and further you will be provided with a unique Demat account number. You can use this number for all transactions related to your securities and is also an identification for your holdings.
Link Demat with Aadhaar
It’s important to link Demat accounts with Aadhaar as it has been made mandatory by the government. Mentioned below are some steps that can help you in linking Aadhaar with a Demat account online very easily by the these steps:
- Visit the official website of your Depository Participant (DP) or you can also visit your Demat account holding organisation.
- Find a section that is related to Aadhaar linking or KYC.
- Click on “Aadhaar Linking” or “Link Aadhaar” option to link your Aadhaar with your Demat account.
- A new page will be displayed where your Demat account details need to be provided with some other information like PAN, Aadhaar number, and contact details.
- Enter your correct Aadhaar number and make sure the details are correct.
- Click on the “Submit” or “Link Aadhaar” option in order to proceed further.
- You may receive an OTP on your Aadhaar registered mobile number after the submission of the form. Enter valid OPT to verify your identity.
- Once the OTP is verified successfully, your Demat account will be linked to your Aadhaar.
A confirmation message or email will be sent regarding the successful linking process. It’s important to keep in view that the process may vary depending on your Depository Participant or the organisation where you hold your Demat account.
Read More: How to link PAN and Aadhaar?
List of Documents Required for linking your Aadhaar Card with your Demat Account
Listed below are the important documents that need to be kept in view before linking your Aadhaar Card with your Demat Account:
- Valid Aadhaar card.
- DP name, DP ID, PAN, and other necessary details related to your Demat account.
- Registered mobile number for OTP verification.
How to know the Aadhaar has been Linked with your Demat Account.
With the help of these steps you can check if your Aadhaar has been successfully linked with your Demat account.
- Visit the UIDAI website.
- You will find a Check Aadhaar Linked account option, click on it.
- Enter your unique 12-digit Aadhaar number correctly.
- An OTP will be sent to your registered mobile number, enter the correct OTP and proceed.
- Once it’s done, all your accounts that are linked to your Aadhaar will start surfacing including your Demat account.
Advantages of Aadhaar-Demat Linking
Linking Demat account with Aadhaar offers various advantages and benefits, few of them are mentioned as below:
- Seamless KYC Process: by Aadhaar-Demat Linking one can simplify the know-your-customer (KYC) process. This linking procedure helps in the elimination of submitting different documents for verification. You can also enjoy seamless account opening and verification procedures.
- Less Paperwork: as Aadhaar card is a comprehensive proof of an individual hence it significantly reduces paperwork. Therefore the Aadhaar-Demat Linking procedure has eliminated the traditional way of opening a demat account, which used to require many different physical papers like identity proofs, address proofs, and photographs.
- Security: As we all know Aadhaar is best known for its robust security features, with its unique identification number it also has a biometric authentication feature which enhances its security. So when a person links a demat account with Aadhaar it enhances it’s security and adds an extra layer of security to your investments. It also prevents third party access and maintains the authenticity of your account.
- Fraud and Theft Prevention: this linking process reduces different types of fraud and prevents identity theft. Linking your demat account with Aadhaar helps in minimising the chances of creating fake accounts hence enhances account security of your finance.
- Easy Access and Account Management: The Linking of Aadhaar-Demat makes account access and investment management easier. It helps in a seamless process, and also provides hassle-free account access. It also makes account updates simple, modifies transaction and verification process.
- Government Initiatives: this linking procedure is an initiative taken by the government of India in promoting financial inclusion, digitalization, and transparency. The government of India also curb many different frauds like tax evasion, financial irregularities and money laundering. These government initiatives also help in building trust in the whole financial system which attracts the individuals more towards the policy.
Read More: How to Check GST Number?
It’s important to link your demat account with Aadhaar to enjoy many different benefits and to reduce loss, fraud and duplicity. We have mentioned the steps of linking Demat Account with Aadhaar, you can also contact customer support in case you are facing difficulty or for up-to-date information.
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