What is Client ID in a Demat Account?
- 5 min read
To begin trading, you must first open a Demat account. It is essential for trading, tracking equities, and managing assets. After opening a Demat account, you will get a Demat account number, referred to as Beneficiary Owner Identification (BO ID), which is a combination of sixteen-digit identifiers.
Understanding your Demat account number is crucial whether you are applying for an IPO, transferring shares, or getting dividends. It consists of a DP ID and a client ID. This blog explains what is client ID in Demat account and how to find it.
Understanding What is Client Id in Demat Account?
A client ID in Demat account is an eight-digit number which facilitates client identification. You can monitor your investment history with this number. The bank or broker that opens your account determines the number. They create a distinct ID for every investor using an internal algorithm.
The distinct client ID makes it easier to track all of your investments in one platform. Moreover, the client ID Demat is provided by the depository participants (DP) to identify their clients and is not affected by the depositories, National Securities Depositories Limited (NSDL) and Central Depository Service Limited (CDSL).
What is DP ID in a Demat Account?
After understanding what is client ID in Demat account, you should also know what a DP ID is. The CDSL and NSDL regulate and control every operation of DPs. They must register their services with one of these depositors.
Once the registration is completed, these DPs are issued their depository ID or DP ID. A DP ID is the unique eight-digit number which remains unique for each DP. This DP ID is the first eight numbers.
How to Find Client ID in Demat Account?
Finding your client ID in Demat account consists of a simple procedure. Follow these pointers below to find your client ID Demat account:
- After opening your Demat account, you will get a sixteen-digit Demat account number, which combines the DP ID and client ID.
- You will notice it is in numerical format. This is because the DP ID forms used by India’s two depositories, NSDL and CDSL, vary.
- The DP IDs issued by CDSL are in numeric format, whereas the NSDL issues DP IDs in alphanumeric form, which consists of ‘IN’ in its first two digits.
- You can find your client ID for Demat account in the Demat account number. The last eight digits of your Demat number are your client ID. For instance, if your Demat account number is 8500666956561267, then your DP ID is 85006669, and the client ID is 56561267.
- You can find the Demat account number in your online brokerage application.
Difference Between Client ID and DP ID
As you have understood how to find a client ID in Demat account, you must know how it differs from a DP ID. The table below compares the client ID and DP ID based on numerous parameters:
| Parameters | DP ID | Client ID |
|---|---|---|
| Meaning | Unique identification number for each DP | Unique identification number for each investor |
| Purpose | Assists in identifying the DP linked to the investor’s Demat account. | Links a Demat account to a trading account and makes it easier to identify the account owner. |
| Number of digits | Eight | Sixteen |
| Used to | Used for communication between investors and DPs | It is used to maintain a record of the Demat account holder’s transactions. |
Conclusion
Understanding a client ID in Demat account is essential for maintaining the records of a Demat account holder. The DP provides a client ID to a person or business that has a Demat account. This unique identifying number is the final eight digits of a sixteen-digit Demat account number.
Want to start your investment journey and trade securities? Download the application of PL Capital Group – Prabhudas Lilladher to open a Demat account for free! Using the PL application, you can avail a wide range of services from brokerage to portfolio management.
Frequently Asked Questions
1. Is the Client ID the same as the Demat account number?
No, your Demat account number is the sixteen-digit code assigned to you. The last eight digits of it are considered a client ID.
2. Why is the Client ID important in stock trading?
A client ID in Demat account is important because it guarantees the safety and effectiveness of your investment management. It is also useful for portfolio management and regulatory compliance requirements.
3. Can I have multiple Client IDs with different Depository Participants (DPs)?
Yes, you can have multiple client IDs with different DPs. You can open multiple Demat accounts from different DPs, which will provide you with a DP ID and a client ID.
4. Can I change my Client ID?
No, you cannot change your client ID in Demat account, as it acts as a unique identifier for your account.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
