The brokerage firms in India has been mandated by SEBI to link the Aadhaar with the Demat account of the client. The accounts that are not linked by the deadline given by the SEBI would be deactivated. For reactivation, the client will need to submit their 12 digits biometric identification Aadhaar number.
To help the investors, National Securities Depository Limited (NSDL) has made provisions to link the Aadhaar with the Demat account online. This allows investors to link their account at any time. In this article, you will learn to link the Aadhaar card with the Demat account online.
Process of Linking Aadhaar with Demat Account
- Visit the NSDL Portal and click on the option “Click Here to Link Aadhaar Number to Demat Account”.
- If you want to directly visit the Aadhaar linking portal of NSDL than click https://aadhaar.nsdl.com/AdhaarSeeding/ and select the option “Get Started”.
- In the next step, enter your “DP Name”, “DP ID”, “Client ID” and PAN. A verification code will be sent to your phone number/email id which is registered with the NSDL. Enter the code and proceed.
- After entering the code, your Demat account information shall be displayed on the screen. Click on the proceed button if you find that all information is correct.
- Now enter your date of birth, gender and Aadhaar number and click on “Proceed”.
- An OTP will be generated and sent to your mobile number registered with the Aadhaar.
- To authenticate the details, enter the OTP and click on the “Submit” button.
- A confirmation message will be sent to your phone number and email id on successful linking of your Demat account with Aadhaar card.
Let us now learn about some points that you must keep in mind before you link Aadhaar with your Demat account.
Points to Keep in Mind
- To authenticate yourself, you must have your email id and mobile number linked with the NSDL.
- Since linking Aadhaar with your Demat account is done using OTP based verification, your mobile number should be registered with the Aadhaar.
- Before linking the account, you must be ready with your DP Name, DP ID, PAN and other details.
- To prevent the risk of hacking or phishing, you must avoid using the public computer or shared internet connections to access your details.
Let us now learn about the benefits of linking the Demat account with Aadhaar.
Benefits of Linking Aadhaar with Demat Account
- By linking Aadhaar with the Demat account, you can close down all the fake accounts because Demat account not linked would be deactivated.
- Investors will be able to easily switch from one broker to another after Aadhaar seeding.
- Since switching brokers would become easier, the brokerage houses will cut the brokerage charges to stay in the competition.
- Monitoring fraudulent actives would become easier.
- The transactions can be carried out in a transparent manner which will attract more people to invest in the market. This will give a boost to the industry.
- Old and new investors would be able to easily manage their accounts as documentation for carrying our transactions in futures and options markets would reduce.
The above mentioned are a few of the benefits of linking Aadhaar and Demat account. As a beginner in the stock market, you can open a Demat account with Kotak Securities and enjoy premium and hassle-free services at affordable rates.