What is DP ID in the Demat Account

The full form of "DP ID"  in Demat account is Depository Participant Identification. A DP ID helps identify the investor's Demat account with the Depository Participant. When you approach a DP and open a Demat account, the DP issues a unique DP ID to the account, which is used to track and manage your Demat account The DP ID is made up of 8 numeric digits or 8 alpha-numeric digits. 

So, the DP ID and client ID together, facilitates buying or selling shares, receiving dividends, etc. To facilitate easy and secure transactions on the Indian stock market, the DP ID is a crucial component of the Demat account. Let’s explore what is DP in Demat account and its uses in this blog.

Why is DP ID used in a Demat account?

A DP ID means a depository participant ID, which identifies a particular depository participant. The DP ID in Demat account is important for the following reasons. 

• DP ID and client ID, together, form your unique Demat account number which is similar to bank codes like the IFSC.
• It helps to distinguish between different depository accounts.
• It further makes it easy to monitor and handle securities and is important in trading and transferring shares electronically.
• The DP ID format for CDSL and NSDL depositories slightly differs. t ensures proper identification of the account holder.
• It plays a crucial role in maintaining the security of electronic holdings by accurately recording transactions and attributing them to appropriate DP.

Understanding DP ID and Its Applications

To understand the what is DP ID in Demat account, one must know how to apply the DP ID and ensure that your transactions are secure. This is where Depository participant (DP) ID comes in, the 8-digit code is a unique number for each client. 

1. Accuracy: The  DP ID facilitates quick and secure transfer of securities across Demat accounts.
2. Quick settlement: DP ID is one part of the Demat account number. All transactions made through a Demat account are settled fast, electronically.
3. Services access: Your depository will enable services' access like e-voting, pledges, and more, upon request of your DP ID.
4. Tracking transactions: A DP ID makes it easy to track transactions. It calls for complete transparency within the trading system. 
5. Safety: DP ID ensures that third-party interference or access to your Demat account is prevented.

DP ID example from the Demat account

The following example helps you to get a clear understanding of “What is DP ID in a Demat account” and a way to recognise it from a Demat account number

As per fundamentals, DP ID + Beneficiary ID = Demat ID

For instance, take the CDSL Demat account number 123567888664422 as an illustration. 

Here, the first eight numbers stand in for the DP ID (12345678), while the last eight numbers (88664422) stand in for the customer ID or beneficiary ID.

On the other side, the NSDL Demat account number will show up as IN12345678664422. Your nation is identified by its first two letters, which are India. The country code and the next six numbers make up the DP ID. Thus, IN123456 is the DP ID and 78664422 is the beneficiary or customer ID. 

How is DP ID Different from the Demat Account Number?

In the case of a DP ID, the assigning authority would be the Depository. However, in the case of a Demat account number, the assigning authority is the DP. DP ID or DP number in Demat account ensures proper electronic delivery from the sender DP to the receiver DP.  It is critical to keep all the relevant data properly, in a transparent manner. 

On the other hand, the Demat account number is used for identifying your holdings in a Demat account. This number is used to make the transfer, purchase, and selling of securities in the Demat account easy.

Understanding DP ID In NSDL and CDSL

India has two SEBI-regulated depositories: Central Depository Services Limited (CDSL) and National Securities Depository Limited (NDSL). The CDSL is operated by the Bombay Stock Exchange, the Bank of India, the Bank of Baroda, the State Bank of India, and HDFC Bank. However, the NDSL is promoted by the Unit Trust of India, IDBI, and the National Stock Exchange. 

You cannot trade directly securities right after opening a Demat account with a registered depository. Depository participants, like banks, are critical to this chain since they act as intermediaries between you and the depository. When you open a Demat account, you will receive a welcome letter from either NSDL or CDSL. The letter contains all of your account information, including the 16-digit Demat account number.  It is known as the Beneficiary Owner ID or BO ID in the CDSL. CDSL's Demat account number is a 16-digit numeric combination, whereas NSDL's number begins with IN and continues with 14 digits.

Finding Demat Account Number on the BlinkX App

Follow the steps mentioned below to find the Demat account number on the BlinkX App.

• Step 1: Launch the BlinkX app
• Step 2: Click on the ‘Account’ section
• Step 3: After that, Click on your profile in the top-right corner of your screen
• Step 4: You will find your Demat account number mentioned below your customer ID.

Now that you know how to find your Demat ID, identifying the DP ID is also quite simple. As discussed earlier in the above article, the first 8 digits of your Demat ID are the DP ID.

Conclusion 
DP means in the Demat account “Depository Participant Identification”. It is a special code that the Central Depository Services Limited (CDSL) or National Securities Depository Limited (NSDL) in India assigns to each Depository Participant (DP). The  DP ID enables smooth and effective trading and investing processes in the securities market. When dealing with securities through their Depository Participant, investors should always make sure they have their DP ID in hand to facilitate correct and efficient transactions. For managing Demat accounts, the BlinkX online trading app provides valuable advice and easy-to-use tools for your online trade.