Know how to check the demat account number from the PAN card in this blog if you have recently opened a demat account. Finding your demat account number from your PAN card ensures a hassle-free investment management experience.
How to Create a Demat Account Online?
To create a demat account online, you need to follow these steps.
1. Visit your broker's website and fill out the application form with the required details. Submit the form for further processing.
2. The brokerage firm will then initiate the verification process, which involves uploading essential documents like your PAN card, proof of address, proof of identity, and other necessary KYC (Know Your Customer) documents. This step ensures compliance with regulatory requirements.
3. The broker will then assign a unique Client ID and a 16-digit NSDL holding identifier, crucial for accessing and managing your demat account. This account will enable you to own and trade securities digitally, making it convenient and efficient for managing your investments.
How to Check a Demat Account Number From PAN?
Here are the steps on how to check all demat accounts with PAN.
1. Complete the application form with all the necessary details on the Depository Participant’s (DP) website. Ensure that you provide accurate information to avoid any issues later on.
2. Fulfil the KYC (Know Your Customer) process by submitting your identity and address proof. Make sure to upload these documents along with your application form. The DP will then conduct the necessary due diligence on their end.
3. Once the DP completes verification, confirm your digital details through two-factor authentication. Provide an email ID and phone number for verification purposes.
4. After completing the digital authentication, verify your bank account and set up the Electronic Clearing Service (ECS) payment method. This will enable smoother and quicker transactions.
5. Once all the necessary processes are complete, you will receive a welcome email at your registered email address. From there, you can expect to receive encrypted emails containing important account information, such as your account history and stock transaction details. Each email will be associated with your PAN card number.
6. To find your demat account number, search for emails from either the National Securities Depository Limited (NSDL), Central Depository Services Limited (CDSL), or your respective Depository Participant (DP). These emails will typically include your PAN card number.
Advantages of a PAN Card in a Demat Account
Now that you know how to find a demat account number using a PAN card, let’s learn the benefits of having a demat account.
● Unique Identification: With a PAN card linked to your demat account, you have a unique identifier for your account. It is proof of ownership for your stocks and bonds. It also acts as proof when selling shares or investing in other securities. This unique identification ensures that no one else can transact on behalf of your account.
● Security: Only the rightful owner can use their details for trading purposes. Physical theft or fraud is not possible with a demat account. You can have remote access to your account to ensure the safety of your investments. Contact the authorities immediately if you suspect any unauthorised activity on your account.
● Helps Start a New Business Venture: A demat account makes investing more effortless and accessible. Different brokerage firms offer services for small traders and startups looking to enter the market.
You can mitigate risk significantly with a demat account. Small traders can borrow from brokers at competitive rates and deposit these sums when required to pay off debts incurred during trading activities.
● ITR Filings: Your demat account number is necessary to file an ITR form and submit annual statements of accounts for HUFs and companies.
● Buying Foreign Currency: You can purchase foreign currencies using your demat account, but certain restrictions. Dealers allow customers to buy money worth up to $50000 per transaction. You must provide additional documentation and follow a formal KYC process for purchases above this limit.
● Investing and Purchasing RBI Bonds: To register for the Reserve Bank of India (RBI) bond, you must submit your PAN card and demat account details. All RBI bond payments are made electronically, and the registration process is easy to complete.
● Deduction in Taxes: You will be entitled to a tax deduction for investments through your demat account. This incentive is available for those who have invested over INR 50,000 in equity and debt instruments. Individuals with an annual taxable income of less than INR 5 lakh are not eligible for this concession.
By linking your PAN card to your demat account, you can easily find your demat account number, allowing you to manage your investments effectively. Follow the steps mentioned above to use PAN to retrieve your demat account number.