How to Link Aadhaar With Demat Account?

When you invest or trade in securities in the Indian market through a Demat account, you must follow some statutory norms. The Securities and Exchange Board of India (SEBI) mandates investors to link Aadhaar with Demat account to continue with investments and trades.

However, linking your Aadhaar Card with a Demat account is not a cumbersome process, and you can do it online in simple steps. Read this article and learn the steps and benefits of linking your Aadhaar with your Demat account.

Documents You Need to Link Aadhaar with Demat Account

If you are curious to know about how to link Aadhaar with Demat account online, first learn what documents you need to complete this process below:

• Keep your Aadhaar Card handy to provide your 12-digit unique Aadhaar number to link Aadhaar with Demat account.
• Demat accounts need a PAN card as a mandatory requirement, so keep it nearby and provide PAN details upon asking.
• Provide your Demat account number while linking. Double-check the number to avert errors or delays in linking.
• Keep in mind your Depository Participant or DP ID, and client ID and produce them.
• Also, keep your registered mobile number active to receive OTPs on it.

Steps to Follow and Link Aadhaar with Demat Account

Now that you are aware of the necessary documents to link your Aadhaar and Demat account, learn how to link Aadhaar to Demat account in simple steps:

• Step 1: Navigate to the official portal of NSDL on your website, look for the “Link Aadhaar with Demat Account” option and click on it.
• Step 2: Provide key details like your Demat account number, DP ID, client ID, PAN information, and contact details. Fill out the captcha and submit.
• Step 3: You will receive an OTP on your registered mobile number and email ID. Provide the OTP on the portal and proceed.
• Step 4: Carefully fill out your Aadhaar information, like your Aadhaar number and other details, and proceed to link Aadhaar with Demat account.
• Step 5: You will receive another OTP on your Aadhaar-registered mobile number. Provide the OTP on the portal and submit. Once the linking is complete, you will receive a confirmation email and SMS.

Why is it Important to Link Aadhaar with a Demat Account?

Apart from the SEBI mandate, there are various advantages of linking your Demat account with your Aadhaar card that make this process important. Here are some key advantages you should know to link Aadhaar with Demat account:

Reduced Documentations

Your Aadhaar Card is solid proof of ID in India, making you a valid Indian citizen. Link Aadhaar with Demat account, and reduce documentation, especially for trading in futures and options.

Keeps Your Account Active

As the SEBI mandated the linking of Aadhaar and Demat accounts, it helps to keep your account activated and to continue investments and trades.

E-KYC and Fraud Prevention

Link Aadhaar with Demat account for an easy and quick e-KYC process. It will help regulators to monitor and prevent fraudulent attempts on your account.

Final Words

As an investor, you should be aware of the steps to link Aadhaar with Demat account due to the SEBI mandate. Without linking them, your account might be deactivated, leading to a loss of account access. It helps in keeping your account safe and reduces documentation while trading in specific securities.

FAQs

Are there any charges for linking Aadhaar with a Demat account?

No, brokers or DPs do not charge any money as a fee to link your Aadhaar and Demat. This process is completely free of cost.

Is it mandatory to link Aadhaar with a Demat account?

Yes, it is mandatory to link your Aadhaar Card with the Demat account as SEBI has mandated the same. Otherwise, you might lose access to your account due to its deactivation.

Is it possible to link my Aadhaar with multiple Demat accounts?

Yes, it is possible and necessary to link your Aadhaar with every Demat account you have. You need to follow the same steps to link every account from separate DPs with your Aadhaar.