A recent change brought about by the Securities and Exchange Board of India (SEBI) is the mandatory linking of Aadhaar with PAN for eligible Demat account holders. This move makes it much more convenient and easier for individuals to file the required paperwork for trading, among other benefits.
Aadhaar is a 12-digit unique identification number that is used to verify people’s identities and helps prevent the risk of fraud. The National Securities Depository Limited (NSDL) has made certain provisions in order to facilitate this linkage. It is a hassle-free procedure and does not require any tiresome paperwork.
Read on to learn more about this process and other details in the following sections.
Below are the documents that you will require to link your Aadhaar to your Demat account:
Demat Account Number
Depository Participant’s (DP) ID and Client ID
Registered mobile number for verifying OTPs
Linking your Aadhaar with your Demat account is quite simple. Here are the steps involved in doing this:
Visit the CDSL or NSDL’s official website and click on the ‘Link Aadhaar with Demat Account’ option
Provide necessary details such as your Demat account number, DP Name, PAN details, client ID, DP ID, and proceed
Enter the OTP received on your registered mobile number and email ID
Update your Aadhaar details, such as your Aadhaar number, Date of Birth and gender and click on ‘Proceed’.
Following this, you will receive a confirmation of your Aadhaar and Demat account’s linkage via email and SMS.
It is recommended to avoid using shared internet connections or public computers to do such procedures to prevent hacking/phishing. You must also have your email ID and mobile number linked with NSDL/CDSL beforehand in order to authenticate yourself.
Straightforward and quicker eKYC approval process
Switch between brokerage firms to better suit your needs and requirements
Effective monitoring allowing capital markets regulators to prevent instances of fraud efficiently
Reduces the amount of paperwork required futures and options trading
Increased transparency in investing, allowing for much more safety and security in dealings
You may now have a better understanding of how to go about linking Aadhaar with your Demat account.
You can open a Demat account without Aadhaar. However, completing the eKYC process is mandatory, for which Aadhaar is necessary.
To do so, you will be required to visit your Depository Participant’s (DP) physical branch. However, it is recommended to link your Aadhaar with your phone number as it can be quite beneficial by simplifying multiple procedures.
To verify if the Aadhaar is successfully linked to your Demat account, you can visit UIDAI’s website and check your Aadhaar-linked account. This will show you all the accounts linked to your Aadhaar, along with your Demat account.