What is BO ID in Share Market & How Does it Work?
Before explaining BO (Beneficiary Owner) ID, we need to know the purpose of this ID. We all have bank accounts where we keep our money deposited. Similarly, in the share market, our securities are deposited in a digital format with the depository that can be either CDSL or NSDL.
Just as our bank account number represents the records of our deposits, withdrawals and loans, the BO (Beneficiary Owner) ID of a Demat account represents our transactions and our securities that are stored in a digital format.
Read to know how this identification number works.
How to Get a BO ID?
As soon as you decide to invest in the share market, you must visit a broker to open a trading and Demat account. Your broker is a depository participant, and they will facilitate the Demat account opening process.
In India, we have two depositories, Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL), which store all the shares of its participatory members, which means your broker.
Once you open a Demat account with your broker, you will get a 16-digit BO ID, which represents your Demat account number.
How to Identify BO ID?
After opening a trading account, you will get a client ID and password from your broker; you can change the password by logging in to your broker’s platform; there, you will find a 16-digit number representing the BO ID. You can check your securities through the CDSL or NSDL platform by entering your PAN and BO ID.
Importance of BO ID
Your Demat account number is vital and compulsory for you to place secondary market orders. Any buy and sell order from your trading account will get reflected in your Demat account. Demat account curtails paperwork involved in trading securities. It also facilitates digital storage of your holdings and securities.
While trading and investing, Demat account BO ID plays an important role. With BO ID, it is possible to open a trading account. Demat account holds your securities safely till the time you wish to sell them. Your Demat account number is as significant as your bank account number; make sure to know all details related to your Demat account.
Frequently Asked Questions
Q1. How to choose a Demat account?
Ans. To open a Demat account, you must register yourself with a SEBI-registered DP(Depository Participant), such as a brokerage firm. You can also check the website of NSDL and CDSL for a list of SEBI-accredited participants and choose a reliable one from them.
Q2. How much time does it take to open a Demat account?
Ans. With online registration, you can open a Demat account instantly and start investing after one working day. Offline branch registration may take three to four days.
Q3. What are the documents required to open a Demat account?
Ans. The documents that you would need are an Aadhaar Card, PAN Card, Passport size photographs and bank statements for the Past 6 Months. Your respective broker agency will send you a postal or an e-mail with a welcome kit containing your BO ID, trading account username and password.
Q4. Is a Demat account different from a trading account?
Ans. Yes, a Demat account is different from a trading account. A trading account facilitates buying and selling shares, whereas a Demat account stores your securities in a digital format and maintains all the transaction details.
Q5. What if I lost my BO ID?Ans. In case you forget your BO ID, you can log in to your trading account and find it in your profile section. You can also recover your forgotten BO ID using PAN on the CDSL website.