Every Demat account has its own unique 16 digit account number which is assigned by the Depository Participant, or the DP, to the Demat account holder. This is known as the Demat account number. Upon opening the Demat account online, a welcome letter from the depository (CDSL or NSDL) will be sent to the user which will contain all the account information including your Demat account number. The Demat account number is also known as Beneficiary Owner ID or BO ID in the case of the CDSL.
The format of the Demat account varies based on the CDSL or the NSDL. The Demat account has a 16-digit numeric character in case of CDSL, whereas in case of NSDL, the Demat account number starts with “IN” followed by a 14-digit numeric code. An example of a Demat account number is CDSL can be 01234567890987654 where an instance of a Demat account number is NSDL can be IN01234567890987.
What is a Depository Participant?
Depository Participants (DP) can be referred to as an Agent of the Depository. Depository Participants are usually brokerage firms, financial institutions, and banks who work as a bridge between the investors and the stock exchanges. The relation of the depository and the Depository Participant is governed by provisions of the Depositories Act, 1996.
What is a DP ID and how is it different from Demat account number?
Your Demat account number and DP ID (Depository Participant Identification) is not the same and also has nothing to do with the Demat account holder. DP ID is a number allocated to the Depository Participant such as a broking firm, bank or financial institutions by the CDSL and NSDL.
A Demat account number is a combination of the DP ID and the customer ID of the Demat account holder. Usually, the first 8-digits of your Demat account number is your DP ID where the last 8-digits of your Demat account number is the customer ID of the account holder.
For example, if a Demat account holder is wondering how to find my Demat account number, they can conduct a simple exercise. For CDSL, if your Demat account number is 0101010102020202, in such a case 01010101 is the DP ID and 0202020202 is the Demat account holder’s customer ID. Similarly, for NSDL, if a Demat account number is IN12345698765432, in that case, IN123456 is the DP ID and 98765432 is the customer ID of the Demat account holder.