What is DP ID in the Demat Account

What is DP ID in the Demat Account

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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.

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Table of Content

  1. Why is DP ID used in a Demat account?
  2. Understanding DP ID and Its Applications
  3. DP ID example from the Demat account
  4. How is DP ID Different from the Demat Account Number?
  5. Understanding DP ID In NSDL and CDSL
  6. Finding Demat Account Number on the BlinkX App

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.

What is DP ID in the Demat Account

 

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.

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FAQs on What is DP ID in Demat Account?

A demat account cannot have more than one DP ID. The depository participants for an investor's many demat accounts may vary, but every demat account will have its own DP ID.

A demat account's DP ID cannot be changed once it has been opened. Investors who want to switch their depository participant must move their securities from the old demat account to the new one and start a new demat account with the new DP.

Inter-depository transfer, often known as share transfer, is a method of moving shares from one demat account to another demat account with a completely different DP ID.

Your demat account will be transferred to another DP without any loss or alteration to the securities contained therein if your DP ceases operations or is deregistered by the depository. You will be informed of the transfer & given the chance to select a different DP.

There are no other depositories in India other than NSDL and CDSL, since only these two are licenced and registered with SEBI (Securities and Exchange Board of India) to offer demat account services.

No, the Demat account number and the DP ID are not the same. The Demat account number is a 16-digit unique number for individual investors. The DP ID is referred to as the 8-digit number allocated to the Depository Participant by the following Depository.

Even if your depository participant or DP goes out of business, your financial holdings will be safely stored at the NSDL or CSDL. You can transfer your financial holdings to another Demat account.

If the depository is NSDL, the first two digits will be an alphabet, while the remaining 14 digits will be the DP number. However, if your depository is CDSL, all 16 digits of the DP account will be numbers only.