Linking Aadhaar Number with your Demat Account

Investing in stock markets requires you to follow certain statutory steps. 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. The importance of Aadhaar number and Demat Account are:

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

Documents you need to keep handy while online linking

  • Aadhar number.
  • PAN Card details.
  • Demat Account number; both client ID and Depository Participant’s (DP’s) ID .
  • Access to your phone for the OTP.

How to link your Aadhaar with Demat Account?

In just one click, you can link them both. Just follow the simple steps given below:

Steps to Link Your Aadhaar With Demat Account
  • Go to NSDL’s web portal, and select the option to link Aadhaar Number to Demat Account.”
  • 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.’
  • NSDL will now send an OTP on your registered phone number and email address.
  • After you enter the OTP, the details of your online Demat Account will be shown on the screen of your device. Check for any discrepancies and after checking the details, select ‘Proceed.’
  • After that, you are required to provide details, including your 12-digit Aadhaar number and Date of Birth (DOB). Then, select the option to ‘Proceed.’
  • Then, you will receive an OTP on your phone number, which has been linked with your Aadhaar and press submit
  • Congratulations! Your Aadhaar 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 to ensure before beginning the Online Linking Process?

  • You have provided your registered phone number and email ID to NSDL.
  • You have linked your phone number with Aadhaar.
  • To ensure UIDAI authentication, the name on your Aadhaar card must match 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 which are:

  • Your e-KYC process will now proceed seamlessly.
  • You won’t face the prospect of your account being deactivated.
  • You can now switch with ease between different brokerage firms which will allow you benefits like reduced brokerage charges.
  • Your trading will now be monitored by SEBI which will prevent any fraudulent transactions from your online Demat Account and Trading Account.
  • You can trade with ease, without any tedious documentation.

Conclusion

Thus, you can now easily link your Aadhar number with your Demat Account, and commence trading in stocks and securities. Selecting a trusted financial partner is necessary 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.