According to SBI Securities, linking your Aadhaar to your Demat account is no longer optional as it has been made mandatory by SEBI — the market regulator. Failing to do so could result in your Demat account being frozen by the broker.
In today’s rapidly evolving digital economy, ensuring the security and compliance of your financial accounts is more important than ever. One such important step is linking your Aadhaar number with your Demat account — a move that not only aligns with regulatory requirements but also enhances the overall safety of your investments. The Securities and Exchange Board of India (SEBI) has made it mandatory to link Aadhaar with Demat accounts and the good news is that you don’t have to visit a branch or deal with tedious paperwork –this essential task can now be done entirely from the comfort of your home.
Whether you are a new investor or a seasoned trader, the process is straightforward and can be completed in just a few minutes, provided you have the necessary documents ready. Not only does linking Aadhaar help streamline Know Your Customer (KYC) verifications on a recurring basis, but it also adds an extra layer of protection against fraud and unauthorized access. Failing to link your Aadhaar could result in your Demat account being frozen by the broker, which means you won’t be able to carry out any transactions until the linking is completed.
Here are documents you’ll need before starting the process:
Before you begin the online process to link Aadhaar with your Demat account, make sure you have the following documents and information handy:
- Aadhaar Card
- PAN Card
- Demat Account Details (DP ID and Client ID)
- Access to your registered mobile number
- Access to your registered email ID
Check steps to link online?
- Visit depository’s website first—NSDL (www.nsdl.co.in) or CDSL (www.cdslindia.com).
- After visiting the web portal, you need to click on the link provided to link your Aadhaar number with your Demat account.
- Upon clicking the link, you will be required to fill in details such as the DP name, DP ID, Client ID, and Income Tax PAN in order to proceed to the next step.
- After entering the details, you will receive a One-Time Password (OTP) on your registered mobile number and registered email ID.
- To proceed to the next step, enter the OTP in the designated field provided on the website.
- Once you enter the OTP, you will be granted access to view the details of your online Demat account. Here, you can check information such as your name, age, address, mobile number, linked bank account, email ID, and more. You will need to verify and confirm these details to proceed.
- In the next step, you will need to enter your Aadhaar number, gender, and date of birth. Once you carefully review these details and click on the ‘Proceed’ button, you will be taken to the following step in the process.
- Once you’ve entered all the details, you will receive an OTP on the mobile number linked to your Aadhaar. This OTP is sent directly by UIDAI. Now, you need to enter the OTP and click on the ‘Submit’ button.
- You will receive an SMS and email notification confirming that your Aadhaar number has been successfully linked to your Demat account. This usually happens in real-time, unless there is any discrepancy—in which case, you may need to resolve the issue offline.
Benefits of linking Aadhaar with Demat account
Linking your Aadhaar enhances the overall security of your Demat account, significantly reducing the chances of fraud or hacking. Moreover, if your Aadhaar is already linked, recurring KYC (Know Your Customer) procedures become hassle-free. This linking also brings all your financial transactions—whether it’s in banking, mutual funds, or stocks—under one unified Aadhaar umbrella, giving you better control and a broader view of your financial activities.
