How to Link Aadhaar Number With Demat Account?

Introduction

According to SEBI regulations, all broking businesses must link their Aadhar and Demat accounts. Until they are linked to a unique 12-digit biometric identification number, accounts that are not associated with Aadhaar will remain inactive. In order to link investors' online Demat accounts with Aadhaar, NSDL has implemented the required steps.
It is now mandatory to link your Aadhaar card while opening a Demat account online, many account users are unsure of how to do so.

What is a Demat Account?

A demat account and a bank account are similar. Your money is kept in a bank account, but your shares are electronically stored in a demat account. In addition to shares, you can hold bonds, treasury documents, mutual fund units, exchange-traded fund units, etc. in your Demat account. Central Depository Services (India) Limited (CDSL) or National Securities Depository Limited (NSDL) are the two companies with whom you can register a Demat account. 

However, neither CDSL nor NSDL allow you to register a Demat account directly. To open a Demat account, you need to contact a broker such as 5paisa. It is noteworthy that 5paisa does not charge anything to provide the feature, although the majority of brokers charge an account opening fee for opening trading and Demat accounts. To open a free Demat and trading account and trade effortlessly, follow this link. 
 

What is an Aadhaar Number?

The Unique Identification Authority of India (UIDAI) issues and distributes the twelve-digit Aadhar number. By enrolling at an official Aadhaar Enrolment Centre, you can obtain your Aadhaar number for free. You must enter your name, date of birth, gender, address, phone number, email address, and other details in order to generate your Aadhar number. Additionally, fingerprints, iris scans, and facial photos will be used by the police to confirm and record biometric information.

After learning the definition and importance of both the Aadhaar number and the Demat account, proceed to the next section to find out how to link the two.  
 

Why Should You Learn About How to Link Aadhaar With Demat Account?

Here are the top benefits of knowing how to link Aadhaar with Demat account online:

•    Your account becomes e-KYC ready, meaning you can invest in a wide range of securities through any broker of your preference without any hiccups. 
•    Your account will not be deactivated for not complying with the regulations laid down by India's Securities and Exchange Board (SEBI).
•    You can conveniently switch between multiple brokerage houses and maximise your profits.
•    SEBI will monitor your Demat account. Hence, the chances of fraudulent transactions will be nil to minimal. 
•    You become eligible to trade in shares, commodities, futures, derivatives, and the likes.  

How to Link Aadhaar With Demat Account - The Nine-Step Process

NSDL offers a free, 24x7 facility to help investors link their Aadhaar number with their Demat accounts.

Here is a step-by-step process of linking a Demat account with Aadhaar number:

Step 1: Visit the NSDL website
Step 2: Click on “Click here to link Aadhaar Number to Demat Account” option on the page
Step 3: Enter the name of your Depository Participant, DP ID, your client ID, and PAN details
Step 4: An OTP will be sent to your registered mobile number and email ID
Step 5: Enter the OTP and click proceed
Step 6: Enter your Aadhaar details and other necessary details and click proceed
Step 7: OTP will be sent to your mobile number registered with Aadhaar
Step 8: Enter the OTP and click Submit.
 
Congratulations! You have successfully linked your Aadhar number with your Demat account. You can now trade seamlessly and conveniently.

Advantages of linking your Aadhaar with your Demat Account?

Here are the top benefits of knowing how to link Aadhaar with a Demat account online:

• Your account becomes e-KYC ready, meaning you can invest in a wide range of securities through any broker of your preference without any hiccups. 
• Your account will not be deactivated for not complying with the regulations laid down by India's Securities and Exchange Board (SEBI).
• You can conveniently switch between multiple brokerage houses and maximize your profits.
• SEBI will monitor your Demat account. Hence, the chances of fraudulent transactions will be nil to minimal. 
• You become eligible to trade in shares, commodities, futures, derivatives, etc.
   

What Documents are needed for linking Aadhaar with your Demat account?

1. Aadhaar Card,
2. DP name, DP ID, PAN, and Demat account details,
3. Registered mobile for OTP verification.

Can You Trade With an Aadhaar-Linked Demat Account?

No. A Demat account linked to your Aadhaar cannot be used exclusively for trading. To trade on the stock market, you must have a trading account connected to your Demat account. To open a free trading account, contact brokers such as 5paisa. 
Following essentials you required:

• A canceled check (for IFSC, MICR, and account number), 
• A passport-size photo, 
• An Aadhaar card, 
• A PAN card and proof of income (only required for derivatives trading accounts) are among the documents you must submit. 

Both online and offline account opening options are offered by 5paisa. You can start a free Demat and trading account from the comfort of your home or by bringing the required paperwork to the closest broker branch.  

The EndNote

So, you know how to link a Demat account with an Aadhaar number. With this, you have moved one step ahead in the journey to make gravity-defying profits. Choose your broker wisely since a low-cost brokerage house cares for your finances by charging minimal fees and offering maximum functionality.