Demat Account Number: What is It and How To Find Out Your Demat Account Number?

Demat Account Number: What is It and How To Find Out Your Demat Account Number?

A Demat account also called a “Dematerialized account”, where financial securities like bonds, shares, government securities and others are stored in electronic format to facilitate easy and safe trade for all the users.
Several people in India open a Demat account to hold any financial securities in the equity or debt market, including commodities, investing in mutual funds or stocks, derivatives, currency markets and more.
In India, a Demat account is usually opened with the help of stock brokerage firms which acts as a participant in the Depository system where all the essential investment records are stored safely and securely.

A Demat account is a 16-digit unique number assigned by the Depository Participant to the Demat holder in order to carry out trade through electronic mode.
When an investor opens the Demat account online, they will receive a letter from any of the two major depositories; National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL), containing all the essential information of your Demat account number.
In the case of CDSL, this Demat account is also called Beneficiary Owner ID or BO ID. For unique identification, every account comes with a unique code called the Demat account number, which is compulsory to carry out trading effectively.

While opening a Demat account, a person should identify their Demat account to make the trading process easier and convenient.
When a person opens the Demat account, the National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL) will give them a Demat account number.
However, a person has the opportunity to select either from both depositories to get registered with them. However, the format of the Demat account is usually based on the depositories.
The CDSL depository provides a 16 digit unique numeric code given to investors, while the NSDL depository provides a 14 digit unique numeric code that starts with IN.
Let's look at the example given below:
The CDSL account will assign a 16 digit numeric code that will be 0123456457897538, while an NSDL account number will give a 14 digit numeric code that starts with IN012345678956743. An investor can select any of the depositories of their choice to create a Demat account.

Depository Participant or DP acts like an agent of the depository. They are usually financial institutions, brokerage firms, or banks that acts as an intermediate between investors and the stock exchanges.
However, the depository and the depository participant is governed by provisions of the Depositories Act 1996.
People looking to invest in shares must open a Demat account, and without the involvement of the depository participant, the investor cannot start online trading.
Several stock broking agencies deal with online stock trading can become a depository participant for any investor. Each DP has its own DP ID, so let's look at the difference between DP and DP ID.
What is the Difference between a Demat Account and the DP ID?
The DP ID and the Demat account number are different from each other. DP is a number allocated by the CDSL or NSDL to the Depository Participant such as stockbroking firms, banks or financial institutions.
On the other hand, a Demat account is the combination of the customer ID of the Demat account and the DP ID.
The first eight digits of a Demat account number is called a DP ID, whereas the last eight digits of a Demat account number is called the customer ID of the Demat account holder.
Let's look at the example given below:
If a Demat account holder is looking to find their Demat account number, they can perform a simple exercise:
1. In the case of a CDSL account, if your Demat account number is 0123456789657489, in such case, the DP ID is 01234567, and the Demat account holder's customer ID will be 89657489.
2. In the case of an NSDL account, if your Demat account number is IN23456189765423, in such case, the DP ID is IN234561, and the Demat account holder's customer ID will be 89765423.
The client ID remains the same as long as the people maintain with Demat account with the same provider. Opening a Demat account has become an easier process in today's time as one can open it online within 15 minutes.

When a person opens a Demat account for the online trader, they get their Demat account number along with it. Without a Demat account and a Demat account number, a person will not trade stocks online.
Once a person registers for account opening, they need to verify their account by the Depository Participant. Once the verification is successful, a person will get an account number that identifies and represents their account number.

  • What is a Demat Account?
  • A Demat account also called a “Dematerialized account”, where financial securities like bonds, shares, government securities and others are stored in electronic format to facilitate easy and safe trade for all the users.

  • What is the Difference between a Demat Account and the DP ID?
  • The DP ID and the Demat account number are different from each other. DP is a number allocated by the CDSL or NSDL to the Depository Participant such as stockbroking firms, banks or financial institutions.
    On the other hand, a Demat account is the combination of the customer ID of the Demat account and the DP ID.

  • What is A Depository Participant?
  • Depository Participant or DP acts like an agent of the depository. They are usually financial institutions, brokerage firms, or banks that acts as an intermediate between investors and the stock exchanges.

  • What will people receive after opening a Demat account?
  • When an investor opens the Demat account online, they will receive a letter from any of the two major depositories; National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL), containing all the essential information of your Demat account number.

  • What are the first and last 8 digits of a demat account number called?
  • The first eight digits of a Demat account number is called a DP ID, whereas the last eight digits of a Demat account number is called the customer ID of the Demat account holder.