How To Find DEMAT Account Number From PAN: Nowadays, stock exchanges have decided to go for digital trading which involves purchasing shares through online trading platforms. These shares are maintained in the dematerialized format in a DEMAT account.
Any individual wanting to trade or invest in the share market should open a DEMAT account with a depository participant, known as the stockbroker. After the opening of a DEMAT account, the investors are allotted a DEMAT account number. This number offers an investor a unique identity throughout the financial market.
In simple words, a Demat account means a dematerialized account where investors have space to store their digital assets or certificates safely. However, a common question among investors is, “How to find demat account number from PAN?’’ If you are into the stock market, read on
An Overview Of DEMAT Accounts
In India, trading used to happen with the help of transferring securities in the form of physical certificates. In 1996, the Securities and Exchange Board of India (SEBI) introduced the concept of Demat account. This revolutionised investing as the entire process was made digital.
One of the most important factors introduced by SEBI was a Demat account. As the name dictates, “Demat” points to dematerialisation. This is a process by which physical securities get converted into electronic form.
As a result, traders or investors can use a Demat account to hold, transfer, or transact securities. By opening a Demat account, an individual can escape the hassles of dealing with physical securities. Thus, trading or investing becomes safer, quicker, and much more efficient.
“DEMAT” principally refers to the process of replacing physical records with a paperless digital system. Main idea of getting a DEMAT account is to make share market investments more convenient for a variety of investors. DEMAT account makes the process of keeping stocks and securities easier.
DEMAT Account Number – What Is It?
Demat account number is a 16-digit numerical code or number which investors get when they open their Demat account. This number is unique to every individual and this represents their financial identity when they trade or make investments in the stock market.
According to SEBI, it is compulsory for every investor or trader to have a Demat account number to make it easy and transparent for the stockbrokers and investors to assess and examine investment portfolios.
Whenever an investor buys and sells shares or applies to various IPOs, a 16-digit Demat account number is quoted which represents an investor. Due to the Demat account number, the shares bought or sold by investors are credited or debited respectively from Demat account in T+2 days.
The Demat account number is formed by a combination of following 2 elements: DP ID and Customer ID. DP ID refers to the number assigned to the financial entities including banks, brokers, etc. by depository institutions like NSDL or CDSL.
Whenever an individual opens a Demat account with any of these entities, the first 8 digits are the DP ID which represents Demat account opening institution. Next 8 digits of the 16-digit Demat account number refer to customer ID which is given to every customer by the stockbroker who opens a Demat account.
These 8 numbers are unique to every investor or trader. Before knowing the process to find DEMAT account number from PAN, individuals need to know the importance of a PAN card in a DEMAT account.
Importance Of PAN Card
Individuals can open trading account with a single holder. This is because a trading account is linked to an individual’s PAN card number. PAN number which is linked to the investor enables the Income Tax Department to examine and monitor income and investment details.
Not only this but due to the linkage of the PAN number, the IT department can also assess tax liabilities of the investor related to market investments. Therefore, it eliminates all the hassles related to tax liabilities.
Now that we know how much importance a PAN card holds while opening a DEMAT account, you might be wondering, “How to find demat account number from PAN?” The process is quite simple.
Can we find Demat account with PAN card?
Best and easiest way to find Demat account number from PAN is to search PAN card number in the inbox folder of the registered email ID. Once the search is complete, you will see an email from CDSL or NSDL.
This email will consist of your DEMAT account number as both the depositories now send welcome letters via email. This process has been made easy due to the rapid adoption of digitization and the government’s effort to improve interaction and interconnection between agencies.
It is very important to have your active email IDs registered with CDSL or NSDL if you want to find DEMAT account number from PAN number. Once the account gets opened, you are all set to invest or trade in the securities market. A DEMAT-cum-digital trading account helps an investor to allow to invest and trade in one place. So, that’s all for the article on “How To Find DEMAT Account Number From PAN”. We hope you found it helpful. Happy Investing!
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