What is DP ID in Demat Account

What is DP ID in Demat Account

The Depository Participant Identification number is referred to as a "DP ID" in the Indian stock market. 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. It could also be said that the DP ID helps identify the investor's demat account with the Depository Participant. This DP ID is made up of 8 numeric digits or 8 alpha-numeric digits. 

So, the DP ID, in tandem with the client ID, facilitates actions, such as 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.

Why is DP ID used in a Demat account?

The DP ID and the Client ID together generate your demat account number. The numerals associated with your demat account number have been assigned for certain purposes. The DP ID, which is the first 8 digits of your demat account number, contains the demat service provider's information. The beneficiary identification, which is another name for the demat ID, is represented by the final eight numbers. Thus, our distinctive demat ID is the result of the two. This closely resembles the bank codes, such IFSC and MICR, that identify your bank and you as a client.

If CDSL is your depository, all 16 digits are the DP numbers in your DP account. If your depository is NSDL, on the other hand, the first two digits are an alpha (code), and the final 14 digits are the DP number.

Start Your Stock Market
Journey Now!

50 Years Trust |₹0 AMC |₹0 Brokerage *

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 DP ID Is Different From the Demat Account Number?
  5. Understanding CDSL and NSDL
  6. Finding Demat Account Number on the BlinkX App

Understanding DP ID and its applications

In order to understand the DP ID in a Demat account, one must know the application of the DP ID and know how to ensure that your transactions are secure. This is where DP ID comes in, the 8-digit code as a unique number for each client. Here are the benefits of the DP ID:

  1. Safe Trade:

    You can do instant trade in a safe and sound trading environment.
  2. Quicker Settlement:

    Now you can do quicker settlement with the online Demat account.
  3. Different Service:

    Your Demat account provides you access to different types of stock market opportunities. Whether it's mutual funds, stock trading, index funds, etc.
  4. Easy Tracking:

    Your DP ID in the demat account allows you to track and manage your holdings and provides easy access to your trading platform.

What is DP ID in Demat Account

 

DP ID example from the Demat account

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 DP ID Is Different From the Demat Account Number?

The DP ID and the Demat account number serve different purposes. The DP ID identifies the Depository Participant in charge of keeping the investor's securities, but the Dematerialised account number is unique to the investor's account with that DP. The DP ID is critical to keep all the relevant data properly, in a transparent manner. It identifies the depository participant in a transaction and provides critical information for tracking and reconciliation.

On the other hand, the Demat account number is unique to each investor and aids in identifying their assets inside the DP's system. This number is used to ease the transfer, purchase, and selling of securities in the Demat account.

While both DP IDs and Demat account numbers are linked to Demat accounts, they perform different functions and have unique properties.

FeatureDepository Participant (DP) IDInvestor ID
DefinitionIt is a unique identity number for the DPsIt is a unique identification ID for the investors
PurposeIdentify the Depository Participant in transactionsIdentify the investor's specific holdings within the DP's system
FormatTypically starts with the letters 'IN' followed by a unique numberA combination of DP ID and the investor's unique account number
IssuerAssigned by depositories (NSDL/CDSL)Generated by the Depository Participant based on DP ID

Understanding CDSL and NSDL

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

  • 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 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 smooth and effective trading and investing processes in the nation's securities market are made possible in large part by DP ID. 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.

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.