It is necessary to open a Demat account with a brokerage firm in order to trade in the stock market. While doing so, you will receive an auto-generated Demat account number, consisting of a client ID. It is a unique set of 8 digits given to the clients to help track their investments and returns. It also helps in identifying a particular client and tracks all their assets.
Let us know more about a client ID and its usefulness in the Demat account in detail!
What Is a Demat Account?
A Demat account is a dematerialised account that helps in holding shares and securities in an electronic format. It holds all the investments an individual purchases in one place. Some of these securities include shares, bonds, mutual funds, government securities, exchange-traded funds and many more.
It facilitates an easy trading system for its users, as during online trading, shares are held in this account. While using a Demat account, investors do not have to go through unnecessary paperwork and can trade in a quick and hassle-free manner. Moreover, a Demat account provides benefits like the elimination of theft, loss, damage and forgery of securities.
What Is a Client ID in the Demat Account?
A Demat account number has 16 digits consisting of two elements, client ID and DP ID, for example, IN00343895765827.
Here, the last eight digits (95765827) of your 16-digit Demat account number is known as the client ID. This number is allotted by the bank or brokerage firm, with whom you open your Demat account. These financial organisations generate a unique ID number for each investor using an in-house formula. However, this client ID is not influenced by the depository institutions and is mainly provided by the depository participants to their clients.
What Is the Importance of a Client ID in the Demat Account?
The importance of a client ID in the Demat account is as follows:
- A client can access details in their Demat account.
- Investors can track their investment history using this number.
- For identifying an investor and keeping a track of all their assets.
- To keep all services of a specific client under one desk.
Where to Find the Client ID of the Demat Account?
Although it is possible to find the DP ID of anyone online, the client ID can only be viewed by the respective client as it is a unique number. The places where you can find a client ID are as follows:
- Welcome Letter
While opening a Demat account or a trading account, you will receive a welcome letter from your broker. This letter usually contains every detail of your Demat account, especially the client ID.
- Demat Account Statement
The Demat account statements usually carry your client ID at the top of the page. This is usually sent via email by your depository as an account statement showcasing the transaction made from your Demat account during this period.
- Online Demat Account
Your Demat account also contains your client ID which you can view after logging in to your Demat account. However, for using this method it is important to always remember your login credentials.
- Online Trading Account
Finding your client ID is easy if you have linked your trading account to the Demat account. However, the exact location cannot be predicted as each brokerage uses a different client interface. Hence, to find your client ID, it is recommended to go through the page precisely.
- With your Stock Broker
If it is impossible for you to locate your client ID even after trying all the above measures, then it is advised to retrieve it by contacting your broker. Although, here you will be asked to verify your identity, and after being satisfied they will re-provide your account details along with the client ID.
What Is the Difference Between a Client ID and a DP Id in the Demat Account?
The main differences between a client ID and a DP ID in the Demat account are as follows:
|Basis of Comparison||Client ID||DP ID|
|Part of the Demat account number||The second half of the 16-digit Demat account number||The first half of the 16-digit Demat account number|
|ID characteristics||Consists only of numeric digits||Consists of both numbers and letters|
|Uniqueness||Usually unique||Similar for clients under a brokerage firm|
|Importance||Very Important||Not of much importance|
|Based on||Not based on NSDL or CDSL||Based on NSDL or CDSL|
|Tracking||Helps track investments and returns||Not involved with tracking investments and returns|
|Allotment||Allotted by depository participants||Allotted by depository institutions|
Being an online financial platform, a Demat account serves an investor in many ways by making the trading process seamless. Hence, before opening a Demat account and starting investment or trading it is very important to know and understand some of the basic things, to have a smooth journey. Once you have set up your Demat account, identify the client ID which will help you to commence trading and investment in the financial markets.
Frequently Asked Questions
Is the client ID and account number?
No, the client ID is not an account number but it is a part of the Demat account number of an investor. It is a unique ID acting as a credential to log in to your Demat account and also as your separate identification.
Are the client ID and login ID of a Demat account the same?
Client ID represents an unknown browser or device while user login ID only represents the unique user. The client ID is randomly generated by universal analytics, whereas for the user ID, you have to pull the login ids from your authentication system and send them as a user ID.
Is it possible to recover my Demat account number in case it is misplaced?
Yes, it is possible to recover your Demat account number in case it is misplaced. Firstly, you can get it from the documents mailed to you by the stockbroker at the time of the Demat account opening.
As your Demat account number is the customer ID, you can search for the DP ID of your stockbroker online. Once you have both, you can combine the DP ID and the Customer ID to reveal your Demat account number.
What are the main advantages of having a Demat account?
The main objective or advantage of having a Demat account is to increase share trading volume and market participation with swift settlements of shares.
In addition, it reduces or eliminates paperwork, increases transparency and facilitates quick and easy communication with investors. Investors using a Demat account are left with little to no risk, which helps in building trust for the company.
Anuj is an investment professional with a demonstrated history of working in Debt Capital Markets. He has completed his B.Com (Hons) in St. Xavier’s College, Kolkata and holds PGDM (Finance) degree from GIM. He is currently working as Investments Principal at Wint Wealth. He has been working in the debt capital market space for the past 4+ years and is also an NISM certified mutual fund expert.