Can you believe that the number of Demat accounts in India has crossed the 150-million mark? (Business Standard)
Online trading and investment platforms have undoubtedly made participation in the stock market very easy. At the heart of this digital revolution lies the BO ID number—this unique 16-digit code that becomes your entrance key to a Demat account.
A demat account is one where all the securities, like shares, debentures, bonds, and mutual funds, are stored electronically. While opening a Demat account, the Depository Participant, the financial institution handling your account, assigns you a unique BO ID or the Beneficial Owner Identification Number.
A BO ID consists of a 16-digit alphanumeric code, in which the first 8 digits represent the DP ID and the last 8 represent the unique Client ID of the customer. Suppose your DP ID is 12049200, and your Client ID is 01830421; then your BO ID will be 1204920001830421.
BO ID can be considered your primary identification as the beneficial owner of the securities held in your demat account. It is required for all transactions, whether buying/selling shares or transferring holdings. Keeping your BO ID secure is very important to prevent unwanted access to your account.
Must Read: What is BO ID in Share Market?
Finding your BO ID is very simple, and you can easily do that through an online broker or Demat account provider. The standard steps would be the following:
Log into your online trading or Demat account using the credentials.
Now, go to the "My Profile" section or "Account Details.".
You will view the 16-digit BO ID displayed alongside the "Demat Account" or "BO ID" tag.
Alternatively, you may obtain it in the welcome letter or in the opening documents of a Demat account received by you at the time of opening such an account.
A DP, or Depository Participant, can be defined as any financial body that links the investor and the central securities depositories, namely NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited). They not only open but also maintain a Demat account and assist in the dematerialisation and rematerialisation of securities.
Moreover, they update your account by changing your holdings through purchase, sale, or corporate action. Some common examples of DPs in India are banks, stockbrokers, and unique specialised account providers. When you open your Demat account, you will get a DP ID, which is nothing but the first 8 digits of your BO ID.
You can find your DP ID and Demat account number by following the below steps:
Log in to the online trading or Demat account platform
Under the "My Profile" or "Account Details" section, click on the "Demat Account" or "DP ID" section
There, you will get your DP ID and demat account number.
When opening a new account, the customer also receives the BO ID as part of the Sharekhan welcome package. This package includes essential account information. It also provides guidelines for trading and customer support details.
It's important to understand the difference between your Demat account number and your DP ID:
|
Demat Account Number |
DP ID |
|
A unique 16-digit (CDSL) or 14-digit (NSDL) number assigned to you by your DP |
An 8-digit number assigned to your DP by NSDL or CDSL |
|
Identifies you as the beneficial owner of the securities in your Demat account |
Identifies the financial institution that manages your Demat account |
|
Used for Demat account transactions |
Combined with Client ID to form Demat Account Number |
Your BO ID is the key to your Demat account and the securities it holds. Remember, you should keep it safe and secure because unauthorised use of your BO ID could result in losing your investments.
Apart from being used for Demat transactions, the BO ID also plays a role in your portfolio management. It allows you to track the history of your transactions and monitor your holdings simply via the DP’s portal.
Additionally, your BO ID is also integral to facilitating corporate actions. Most companies rely on these IDs to identify eligible shareholders before distributing dividends or bonus issues.
BO ID is the backbone of your Demat account, as it is the unique identifier that traces you to your investments. Every investor ought to know what is BO ID in CDSL, how to find it, and how essential it is to keep it safe in this digital era. By getting to know your BO ID, you will have learned how to ensure your Investment Portfolio's safety and integrity.
The rapid growth in Demat accounts underlines the need to know the role of the BO ID in today's investment scene. It is incumbent upon the investor to keep his BO ID safe or secure and check the Demat Account at frequent intervals for any suspicious activity. If you're vigilant about account security best practices, it will feed your confidence in investing in the stock market.
As more and more people continue to open Demat accounts, the BO ID will be a very relevant tool for investors who want to enter the stock market and carve out their financial futures.
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