How to Link your Aadhaar Number with your Demat Account?

If you are looking to invest in stock markets, then you have to follow certain statutory requirements. Foremost, is to link your Aadhaar with Demat Account. Market regulator, Securities Exchange Board of India (SEBI) made it compulsory for all brokers/ brokerage firms to link Aadhaar with the Demat Account of investors using their trading platforms. Following this, National Securities Depositories Ltd (NSDL) made provisions for the online linking of Aadhaar with the Demat Account of all investors.

The process of online linking is hassle-free and does not require cumbersome paperwork. In fact, the facility of online linking is available round-the-clock on NSDL’s website. Before knowing the process of online linking you must understand the importance of Aadhaar number and Demat Account.

  • Aadhaar is a 12-digit individual identification number issued by the Unique Identification Authority of India (UIDAI), a union government body. It serves as an identity and address proof across the country.
  • Demat account is a dematerialized account, where the physical shares owned by you are kept in an electronic format. You cannot trade in stock markets without having a Demat Account.

Now, read on to know the process of online linking.

What are documents you need to keep handy while online linking?

  • You must keep your Aadhar number with you.
  • You have to keep your PAN details.
  • You have to keep handy your Demat Account number, which includes both client ID and Depository Participant’s (DP’s) ID.
  • You must have access to your phone as the OTP will be sent to your registered number.

How to link your Aadhaar with Demat Account?

At the click of a mouse, you can link them both. Just follow the simple steps given below:

  • Step 1: Go to NSDL’s web portal, and select the option to link Aadhaar Number to Demat Account.” You can also use the link: https//aadhar.nsdl.com/AadhaarSeeding/ to start the online linking process.
  • Step 2: You must now provide the name and ID of your Depository Participant, along with your PAN details. The web portal will then seek a verification code, following which you have to select the option to ‘Proceed.’
  • Step 3: NSDL will now send an OTP on your registered phone number and email address.
  • Step 4: After you enter the OTP, the details of your online Demat Account will be shown on the screen of your device. Here you must check for discrepancies, if any. After checking the details, select the option to ‘Proceed.’
  • Step 5: Now you are required to provide details, including your 12-digit Aadhaar number and Date of Birth (DOB). Then, you must again select the option to ‘Proceed.’
  • Step 6: You will now receive an OTP on the phone number, which has been linked with your Aadhaar.
  • Step 7: Now you must provide the OTP, and select the option to submit it.
  • Step 8: Congratulations! Your Aadhar number is now linked to your Demat Account. You will receive an SMS and an email confirmation. You can now start buying/selling stocks through your Trading Account.

What should you ensure before beginning the Online Linking Process?

You should pay close attention to several points before starting the linking process. Some of them are:

  • You have provided your registered phone number and email ID to NSDL.
  • You have linked your phone number with Aadhaar. Here you must consider having one mobile phone number for all official purposes.
  • To ensure UIDAI authentication, you must ensure that the name on your Aadhaar card matches with that on your Demat Account.
  • You should not use public computers/ common Wi-Fi for the linking process, as these might be susceptible to hacking, phishing, and other internet frauds.

What are the Advantages of Linking both Before Starting to Trade in Stock Exchanges?

Linking your Aadhaar with your online Demat Account can provide you with several benefits. Some of the benefits include:

  • Your e-KYC process will now proceed sans any hiccups.
  • You don’t face the prospect of your account being deactivated.
  • You can now switch with ease between different brokerage firms. Switching can allow you benefits like reduced brokerage charges.
  • Your trading will now be monitored by SEBI. This will prevent any fraudulent transactions from your online Demat Account and Trading Account.
  • You can trade with ease, without tedious documentation, in other share market instruments, like futures, derivatives, and commodities.

Conclusion

Thus you can now easily link your Aadhar number with your Demat Account, and commence trading in stocks and securities. You must always select a trusted financial partner, who can provide you with a hassle-free trading platform and cutting-edge market reports. IIFLs all-in-one trading platform allows you to trade in a slew of options in the stock market. You also receive daily and weekly customized reports having in-depth coverage of markets, companies, and business

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