How To Find Demat Account Number and DP ID?

A Demat account, short for a dematerialized account, is inevitable in today’s financial markets. It allows investors to hold their securities in an electronic form. This might include stocks, bonds, and even mutual funds. Hence, with the complete boom of online trading, a Demat account has become a necessity for everyone who wants to start their journey in the stock market.

Opening a Demat account is a relatively simple process, and the individual gets assigned a unique Demat account number, whereas a DP ID or Depository Participant ID is a number assigned to the Depository Participant. 

This article explains the Demat account number and DP ID, their importance, how to find out, and how to keep your Demat Account safe. It further sheds light on the difference between the two major depositories, i.e., CDSL and NSDL.

What is a Demat Account Number?

A Demat Account number is a 16-digit unique identifier code allotted to every person opening a Demat account. Just like a bank account number is unique to your account, the same is true for a Demat account number, which stores securities in electronic form. This 16-digit number is broken down into two halves:

• The DP ID (Depository Participant ID): The first eight digits constitute the DP ID, which is an identification number issued to the depository participant, i.e., your broker or bank.

• The Customer ID: The remaining eight digits represent the customer ID and are specific to the holder of that account within the system of the depository participant.

Essentially, the Demat account number is your DP ID combined with your customer ID.

What is DP ID and Customer ID?

Your Demat account number is made up of two segments: the DP ID and the Customer ID. Let us break it down:

• DP ID: DP ID stands for Depository Participant Identification. It is a unique code allocated to the Depository Participant (which may be your broker or bank) by the depository (either CDSL or NSDL). This ID identifies the DP with whom you have opened your Demat account.

In NSDL, the prefix ‘IN’ is added before the DP ID, while in CDSL, DP ID is an 8 digit number that forms the first 8 digits of the Demat Account number.

• Customer ID: The Customer ID is the last 8 digits of your Demat account number, uniquely identifying your account in the DP’s system. 

For example, if the Demat account number for an NSDL account is IN12345678901234, then the first 8 characters, i.e. IN123456, represent the DP ID. The rest of the characters are representing your Customer ID. In the case of a CDSL account, your Demat account number will be of 16 digits, and the first 8 digits will form your DP ID, and the rest form your Customer ID.

Importance of Demat Account 

Your Demat account is extremely important due to the following reasons:

• Ownership of Securities: Your Demat account number is used to verify ownership of the securities. Every time you buy or sell shares, your Demat account number ensures the transaction is recorded correctly in your name.

• Facilitates Transactions: The Demat account number helps in the efficient transfer of securities without the need for extensive paperwork. As the demat account stores the securities in electronic form, the securities can be bought and sold at a quick pace.

• Record Keeping: The electronic format of the Demat account helps maintain records and reduces the risk of loss or theft associated with physical certificates. All your securities are stored in one place, thereby making it easier to track and manage them.

• Essential for Stock Market Participation: Without a valid Demat account number, one cannot trade in the financial market. A Demat account is absolutely indispensable for any individual looking to trade in the stock market.

• Simple Settlement Process:  Due to the electronic format of the Demat account, the settlement process is pretty straightforward.

• Support Holding of Multiple Securities: Using the Demat account, one can hold several types of securities, such as shares, bonds, mutual funds, and government securities, under one account number. Thus, it simplifies the process of managing investments.

How to Find your Demat Account Number?

There are various ways you can get your Demat account number. Some of the most common ways are:

1. Contract Notes:  Depository Participants (DPs) usually send contract notes regularly that record the transactions on a particular day in your account. Your Demat account number will generally appear at the top of the statement.

2. Mobile Trading Apps: Many brokerage firms provide mobile applications for trading purposes. You can navigate the mobile application and find the Demat account number in the ‘Profile’ or ‘Account Details’ section.

3. Contact Your DP’s Customer Service: If you are unable to find your Demat account number, you can always contact your DP’s customer service. They will verify your identity first and then give you your account number.

4. Welcome Kit: If you are opening your Demat account for the very first time, you will receive a welcome kit either physically or digitally. The kit contains important details, such as your DP ID and Demat account number.

How to Secure Your Demat Account?

In today’s digital world, it is important to secure financial information. The best ways to keep your demat account safe are:

1. Use Strong Passwords: The first thing when it comes to the Demat account security is to use a strong and unique password. Avoid using passwords that can be easily guessed, such as date of birth or simple sequential numbers, like “123456.”

2. Activate Two-Factor Authentication (2FA): Activate two-factor authentication for your Demat account and other online trading platforms. It adds a layer of security, making it almost impossible for unauthorized people to access the account.

3. Check Your Account Activity: Regularly check your demat account and transaction history for any unauthorized or suspicious activities. This will help you identify irregularities in time and report them to your DP.

4. Be Alert to Phishing Attacks: Do not reveal your Demat account details and password to anyone. A DP never asks for these details over a phone call or email.

5. Update Security Measures Frequently: Updated versions of antivirus and anti-malware software should be installed on all devices through which you log into your Demat account. This will help prevent cyberattacks and data leakage.

Two Formats of Demat Account Numbers

India has two depositories: the Central Depository Services Limited (CDSL) and the National Securities Depository Limited (NSDL). Both depositories follow a slightly different Demat account number pattern, as explained below:

CDSL (Central Depository Services Limited):

• Format: It is a simple 16-digit number code. Example: 1234567812345678.

The Demat account number. It is a combination of both DP ID and Customer ID. The first 8 digits of the Demat account number represent the DP ID, and the remaining 8 digits represent the customer ID.

NSDL (National Securities Depository Limited):

• Format: It is a combination of the prefix ‘IN’ and a 14-digit numeric code. For example: ‘IN12345678901234’.

The prefix ‘IN’ differentiates the format of the NSDL Demat account from the CDSL Demat account number, and the following 14 digits are a combination of DP ID and Customer ID. The first 8 digits represent the DP ID, and the remaining 6 digits represent the customer ID.

Difference Between CDSL and NSDL

Although CDSL and NSDL are both significant players in the securities market infrastructure of India, there are some differences between them:

Conclusion

A Demat Account is crucial if you are actively involved in the financial markets. A Demat account number is a combination of DP ID and Customer ID. However, there are some differences in the format of the demat account numbers of CDSL and NSDL. An investor can easily find their Demat account number from contract notes, mobile applications, etc. An investor must create strong passwords for security, and by regularly monitoring your account, you could keep your Demat account safe.

Frequently Asked Questions (FAQs)