You must have often heard about the DP ID regarding your demat account. Are you aware of DP ID, though? The DP ID is unique to each investor, giving the client a unique identity.
You know your demat account number contains quite a lot of information, which is automatically added to it. The DP account assigned to you is essential and, in particular, contains certain combinations of data. There are 16 characters for an investor’s DP, or Demat, account. The first eight digits of the ID of the depository participant are the ID of the 16 characters. This identity is assigned to the demat service provider.
We will look at what a DP ID is in a demat account.
Whenever you open a demat account, you can get a demat account number. There are a lot of details embedded in your demat account number. The fact that several digits have been assigned to your name for specific purposes may surprise you. The first eight digits of your depository participant identity (DP ID) are the identity of your demat service provider. The identity of the beneficiary shall be given in the last eight digits. Your unique demat identification lies in the combination of these two elements. It’s very similar to the IFSC and MICR codes that identify your bank with you as a customer.
All 16 digits of your DP account are the number of your depository, CDSL. That’s the DP ID you have.
The DP ID can be summed up as follows:
DP ID + Beneficiary ID = Demat ID.
Consider the CDSL demat account number 1234567891234567. For example, the first eight digits (12345678) are the DP ID. The recipient’s or client’s ID is displayed in the remaining eight digits, 91234567.
The NSDL demat account number will appear like this: IN34567891234567. Your country’s identity, India, is in the first two letters. The DP ID is a country code, followed by the subsequent six digits.
A Demat account will be opened after submitting and verifying the investor’s documents. The depositor shall provide an investor with a welcome letter containing all information on the account, including its name, as soon as it is opened. There are both DP and client identifications in the account number. If you open a demat account with CDSL, you will get a beneficiary ID other than a demat account number.
Sixteen digits will be assigned to the account number of a Demat account set up with CDSL. For example, if you have an account number of 0000000011111111, then 00000000 is your DP number, and 11111111 is your customer number. A Demat account registered with NSDL starts with “IN.” There are 14 numbers after that. For example, if IN01234567891213 is your NSDL Demat account number, then IN0123456 is your DP ID, and 7891213 is your customer ID.
The DP ID is the first eight digits of the Demat account number, whereas the Demat account number is a 16-digit unique code. Your customer’s identification number is the last eight digits. As CDSL and NSDL accounts can differ in their Demat account numbers, let’s use a simple example to understand them. To help you understand the format, we have included sample account numbers below:
- For CDSL: The account number for the Demat is 1020304050607080.
- For NSDL: The number of the Demat account is IN11223344556677.
It’s not just a set of numbers that make up your demat account. It’s been assigned in such a way that it will be easy to identify you as its client and your depository participant. The DP shall be used as an intermediary by two depositories, NSDL and CDSL. It is essential to understand the definition of a DP ID and why it is used. To sum up, the DP ID is a subset of your impressive demat account number.
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