What is Beneficiary Owner Identification Number (BO ID)

What is BO ID?

A Beneficial Owner Identification Number (BO ID) is a unique 16-digit code assigned to demat account holders by CDSL or NSDL. It identifies the owner of securities and is crucial for tracking investments. This number is linked to the investor's PAN and is needed for selling shares and other securities electronically.

This number is generated for investors when they apply for a demat account in India. A demat account stands for a dematerialised account through which shares and securities are held in an electronic format. It is divided into two parts: The first eight digits are the Depository Participant (DP) ID, and the next eight digits are the distinct client code. 

 

BO IDs are provided by two primary depositories in India, namely the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL). This ID is extremely important in realising the settlement process of securities. It serves as a paperless method that simplifies the way investors manage their securities while boosting the security and efficiency of share dealing and investment.

How to Find The BO ID?

Knowing your BO ID is necessary for handling your investments through a demat account. Here are some ways you can find your BO ID: 

1. Demat Account Statement:

Your DP regularly provides you with the dematerialised account statement, which contains important information on your investments and trades.

• Your Depository Participant (DP) sends you a Demat account statement on a regular basis with transaction and investment information.
• This can be sent via email or physical mail and either monthly or quarterly.
• The BO ID is usually found in the section on the account summary, usually at the top corner of the first page or beside your account number.

2. Online Access

Almost all depository participants offer internet-based facilities for accessing your demat account. To find your BO ID, simply login to the following platforms:

NSDL/CDSL Websites: If your DP is registered with NSDL, then you should log on to www. nsdl.com. If your DP is registered with CDSL, then log on to www.cdslindia.com. Here, you can log in to your account using your login details. Go to the account summary/profile page, where your BO ID can be found.

DP’s Online Portal: If your DP has its online portal, please go to that portal and log in with the appropriate credentials. The BO ID is often located in the account information or profile section of the exchange.

3. Mobile Applications

A large number of DPs provide mobile apps that give you access to your demat account. Get your DP’s mobile app from the App Store if you have an iOS device or the Google Play Store if you have an Android device. Access the profile with your account details, and go to the account details or summary page. Your BO ID should be there.

4. Customer Service

If you are not able to locate your BO ID using the above methods, the next best thing you can do is to get in touch with the customer service of your DP.

Call or Email: Fill in identification requirements like full name, registered email ID, and PAN card number. The customer service representative will help you in identifying your BO ID.

5. Account Opening Documents

During the first time, when you opened your demat account, you were provided with several documents and welcome kits. It is common for these documents to include your BO ID.

Welcome Kit: If your DP provided them, read the welcome letter or the account opening kit. The BO ID is normally found in the account details section of the site.

Initial Documentation: When communicating with the DP for the first time or documenting the conversation, you should provide your BO ID.

Following the above guidelines, you do not have to struggle to find your BO ID or control your securities and investments.

How to Find DP ID & Demat Account Number?

DP ID and Demat account number are important in terms of tracking investments and carrying out trading.

What is meant by DP ID and Demat Account Number?

DP ID (Depository Participant Identification Number): A participant ID, which is a unique identification number given to a depository participant (broker) by the depository (such as NSDL or CDSL of India).

Demat Account Number: A unique account number given to your Demat account, which can be your DP ID fused with a client ID.

How to Locate your DP ID and Demat Account Number?

Like BO ID, DP ID is also quite essential; here are a few places where you can find your DP ID: 

• Check Your Welcome Letter:

Soon after opening a Demat account, you will receive a welcome letter or email from the DP. This document mentions the DP ID and Demat account number.

Find these specifics in the Demat account statement that one receives periodically. The DP ID normally is the first eight digits of the 16-digit Demat account number.

Go to the homepage of your broker’s website or open their trading app on your smartphone or tablet. Go to the area in which details of the Demat account are provided.

• Contact Customer Support:

Try calling your broker's customer service team. After they have authenticated you, they can give you your DP ID and your Demat account number.

• Check Contract Notes:

The confirmation notes or the trade statements that the broker sends after the trade usually have your DP ID and Demat account number.

Many brokers offer a passbook for your Demat account, which contains your DP ID number and account number.

Breakdown of a Demat Account Number

For example, if your Demat account number is IN12345678901234:

• IN123456 is the DP ID.
• 78901234 is the client ID.

What is a Depository Participant (DP)?

A Depository Participant (DP) is an agent who works as a link between the depository and the investors. Depositories have the physical custody of securities in electronic form, so there is ease in the transfer and ownership of securities and no physical certificates are required.

Here are a few functions of DP:

• Intermediary Role: DPs act as intermediaries between the depository and investors. They are accredited representatives who make deposits for investors.
• Account Services: DPs assist investors in opening and managing demat accounts, which are required when holding securities in electronic form. A demat account is similar to a bank account, except that it is used for storing securities.
• Transaction Services: DPs help in various dealings, including dematerialisation, the process of converting physical certificates into electronic forms, and rematerialisation, which involves converting electronic forms into physical certificates. They are also involved in the transfer, settlement, and pledge of securities.
• Corporate Actions: DPs oversee matters relating to dividend and interest payments, bonuses, and rights issues on behalf of the investors.
• Statements and Reports: They report to investors on the securities they own and those they buy or sell at intervals. This is useful to investors in keeping track of their securities and the performance of their securities investment portfolio.
• Compliance and Regulation: DPs are governed bodies and are required to adhere to the rules and regulations provided by the depositories, namely NSDL and CDSL of India and SEBI.
• Security and Confidentiality: They protect the investor’s details and investments and offer a suitable marketplace to buy and store securities.

How is a Demat A/C different from a Depository Participant (DP)?

A demat A/C is different from a depository participant in many ways:

Purpose:

Demat Account:

A Demat Account is primarily meant to remove the inconveniences and hazards of holding physical share certificates, which include theft, fraud, loss, or even damage. It is a relatively safe means of storing and trading investment instruments in electronic mode.

DP:

The DP assists investors by providing services for converting physical securities into electronic form (Dematerialization) and vice versa (Rematerialization).

Ownership:

Demat Account:

A Demat Account belongs to an investor or a company that actively engages in trading securities. They are personal to the investor to ensure that the investor has a way of holding the investment in his name.

DP:

A DP is normally a financial services provider organisation such as a bank, stockbroker, or other financial institution that is appointed by the depository to provide you a service to open a demat account. These institutions serve as intermediaries of the depository, undertaking tasks that may be useful for investors.

Functionality:

Demat Account:

Demat Account resembles a bank account where, instead of money, securities are held in an electronic format. This account allows investors to purchase and sell securities and also transfer securities from one to another. 

DP:

The DP offers the facilities and support needed to operate a demat account. They help open demat accounts, process securities dematerialisation/rematerialisation, trade, generate account statements, and comply with regulations. 

Relationship:

Demat Account:

A Demat Account cannot be on its own; it needs a DP for it to function. The DP also operates and maintains the Demat Account to provide a record of all transactions affected. 

DP:

The DP is allowed to provide demat account services to investors through the depository. They are charged with the responsibility of ensuring that their managed demat accounts are running properly by following all the laws and regulations as well as handling procedures. 

Conclusion

BO ID in CDSL and NSDL is essential for safe and valid dealings in the securities market. It uniquely identifies investors and associates their investments with ownership. By enhancing proper tracking and management of securities, the BO ID ensures proper accountability and integrity in the financial markets. Therefore, it plays a crucial part in ensuring a credible and continuity of the investment environment.