What Is the Demat Account Number?
After opening a Demat account, every individual receives a distinct 16-digit number, of which the first eight digits are the DP ID, and the following eight are the Customer ID.
Each Demat account holder receives an account number, which is formed by combining these two IDs. The Demat account number is essential for several reasons. In the Indian stock market, all traders must have this account for trading.
Understanding DP ID in the Demat Account
- The full form of DP ID in the Demat account is the Depositary participant's ID.
- DP ID in the Demat account is a mandatory number assigned to all the registered depositary participants in India.
- These unique digits are assigned to CDSL and NSDL, also known as depositary participants, such as financial institutions, broking firms, and banks.
- Demat account holders have nothing to do with the DP ID number as the Demat account number and DP ID number are not the same.
Example of DP ID in the Demat account:
If CDSL Demat number is 123456789101112131, then the CDSL DP ID in the Demat account is 12345678, i.e. the first eight digits and 910111213 is the beneficiary ID. With NSDL, the Demat account number will start with IN IN12345678910111. The DP ID is IN123456, and 78910111 is the beneficiary ID.
Understanding CDSL and NSDL
All the investor's financial records are kept in a repository in a dematerialized form. The Central Securities Depository Limited (CSDL) and National Securities Depository Limited (NSDL) are the two depositories currently operated in India.
Each depository appoints representatives to deal with the investor on their behalf. These individuals are referred to as DP. They serve as a bridge between the investor and the depository. CDSL and NSDL are listed with SEBI. CDSL and NSDL may not serve as depository participants unless they have a current SEBI accreditation.
In addition, they have a special DP ID number, also known as a depository participant ID number. As previously stated, the DP ID is not the same as the Demat account number, but it is a component.
What Is the Client ID in the Demat Account?
Client DP ID in the Demant account number is a unique 8-digit number. The depository participants generate these numbers to identify their clients.
By taking the previous example, If CDSL Demat number is 123456789101112131, then the DP ID in the Demat account is 12345678, i.e. the first eight digits and 910111213 is the client ID. With NSDL, the account number will start with IN12345678910111. The DP ID is IN123456, and 78910111 is the client ID.
How to find out the client ID in the Demat account:
- An account holder can call NSDL or CDSL and give them the PAN to find the Demat account number.
- An account holder can call the DP helpline and give them the PAN, and they will assist them.
- Logging into CDSL EASI or IDeAS–NSDL (depending on the situation) will provide all the information about the account.
What Is a Demat Account?
Without understanding the roots, one cannot understand the DP ID in the Demat account.
For starters, Financial securities are stored electronically in a dematerialized account or Demat. Either debts or stocks can be financial securities. Like any other account, a Demat account contains an account number required for two passwords and is used for electronic transactions or trade settlements.
One is for the internet, and the other is for the actual transaction that starts the buying or selling of shares. However, the interested parties need a trading account to purchase or sell the securities.
The National Securities Depository Limited and Central Depository Services Limited are the two central depository institutions in India that manage Demat accounts. The digital copies of the stocks are stored in these accounts. For instance, a Demat account can hold 100 shares of Tata Steel after purchasing them.
How to Find the Demat Account Number?
The final 8 digits of the 16-digit number given by NDSL or CDSL are the Demat account number. The DP number is the first eight characters of the 16-digit code. The broker can provide the account holder with this information if they do not know the 16-digit number.
The account holder can also contact the customer service of the trading platform, and they will provide the required information.
Take Away
- DP ID and Demat account number are not the same.
- Demat account holders have nothing to worry about the DP ID as they belong to the depository participants.
- The last 8-digit numbers in a CDSL or NSDL Demat account number represent the client ID.
- The Demat account number is generated in such a way as to identify the clients of the depositary participants.
- The DP ID is assigned to the representative with whom a person has the Demat account.