Demat-Aadhaar Link: In today’s time,the Aadhaar card has become an integral part of the life of every Indian citizen. From banking to tax filing,it is needed everywhere. Like PAN card and bank account,now linking the demat account to Aadhaar has also been made necessary. The Securities and Exchange Board of India (SEBI) has made it mandatory. If your demat account is not linked to Aadhaar,then your broker can temporarily freeze your account,due to which you will not be able to do any kind of transaction.
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What will be the loss if linking is not done
If the demat account is not linked to Aadhaar,then investors will not be able to buy and sell in the stock market. This can stop your investment,and you may have to face financial loss in the long run. Therefore,it is very important to link Aadhaar in time.
How easy is the online process
The process of linking a demat account to Aadhaar is completely online and can be completed in just 10 minutes,sitting at home. For this,you must have access to an Aadhaar card,a PAN card,a demat account number (DP ID and client ID),a registered mobile number,and an email ID.
Steps to link a demat account with Aadhaar
- First of all,investors should visit the official website of NSDL (www.nsdl.co.in) or CDSL (www.cdslindia.com).
- Here,by choosing the linking option,the DP name,DP ID,client ID,and PAN card details have to be entered. \
- After this,OTP will come to your mobile and email,which has to be entered.
- After this,your account details will appear on the screen,which you have to check and confirm.
- Then proceed by entering Aadhaar number,date of birth,and gender. After getting the OTP from UIDAI,submit it.
- After successful verification,you will get confirmation by SMS and email that your Aadhaar number has been linked to the demat account.
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Benefits of Aadhaar linking
The biggest advantage of linking a demat account with Aadhaar is at the level of security. This reduces the possibility of fraud and hacking. Also,there is no need to do KYC again and again. This facility gives investors a holistic view of all transactions of banks,mutual funds and stock market.