Aadhaar de-seeding from a Demat account is the process of removing the link between an Aadhaar number and a Demat account. However, you have linked your Aadhaar with your Demat account to ease the verification process for financial transactions. Now you are willing to remove the linking of these both for any reason. If it is follow this full guide.
In this post, we have explained when and why you might want to de-seed or remove the linking of Aadhaar from your Demat account, the steps to follow, and the consequences of doing so. Let’s get started!
Also Read: Aadhaar De-seeding in Detail
Steps to De-Seed Aadhaar from Demat Account
If you have decided to de-seed or remove your Aadhaar from your Demat account, here is a step-by-step process. Please note that the exact procedure may vary depending on the Depository Participant (DP) you are using (e.g., NSDL, CDSL, or a specific broker).
Step 1: Contact Your Depository Participant (DP)
Firstly, contact the Depository Participant (DP) or the brokerage firm where you hold your Demat account. You can do this by visiting their office, calling their customer care number, or sending an email request, whatever is suited to you as per the available options.
Step 2: Submit a Written Request
Most Brokerage firms require a written application request to initiate the Aadhaar removal or de-seeding process. You will be required to fill out a specific form provided by them or write a formal letter requesting to de-seed of your Aadhaar number from the Demat account.
Step 3: Submit Necessary Documents
Along with your written request, you will need to submit some supporting documents for verification. These can include:
- Aadhaar card (as proof of identity)
- PAN card (to verify your Demat account)
- Any other document your DP may require for verification.
Make sure to provide both the original and photocopies of the documents for submission. You may also need to carry a passport-sized photo for identity verification and don’t forget to keep photocopies of all the documents before submitting.
Step 4: Verification
Once you submit your request, the service provider will verify your information. This verification process ensures that the Aadhaar de-seeding request is legitimate and that there is no mismatch in details between your Demat account and Aadhaar. You may require an OTP verification too.
Step 5: Confirmation of De-Seeding
After successful verification, your application will proceed to de-seed your Aadhaar from the Demat account. Once the process is complete, you will receive a confirmation email or SMS notifying you that your Aadhaar link has been removed.
What Is Aadhaar Seeding and De-seeing in a Demat Account?
Before we discuss the de-seeding process, it’s important to understand what Aadhaar seeding is. Aadhaar seeding is the process of linking your Aadhaar number to your Demat account, in identity verification and completing your Know Your Customer (KYC) without any delay. This process ensures that the person is verified by Aadhaar, making financial transactions smoother and more secure.
Though Aadhaar seeding has so many benefits, but there are some special cases when a person chooses to de-seed or remove the Aadhaar from the Demat account. This linking removal process is called aadhaar de-seeding in a Demat account
Also Read: How to De-link Aadhaar With Ration Card
Reasons for Aadhaar De-Linking From Demat
- Personal Detail Protection: Some users may feel uncomfortable sharing their Aadhaar information with financial institutions due to concerns about personal information security. Removing the Aadhaar link helps protect personal information from any misuse.
- Compliance with New Rules: Over time, regulations around Aadhaar linking in financial accounts may change. In some cases, you may not need to keep your Aadhaar seeded with your Demat account if it is no longer mandatory.
- Name Change: If there is a mismatched name in your Aadhaar and the details on your Demat account, you may want to remove your Aadhaar until your information is updated. This reason is most common in females after marriage or divorce. As females adopt their spouse’s surname after marriage.
- Changed Mobile Number: If the mobile number is changed between your aadhaar linked and your demat account information. In this situation a person can remove aadhaar linking to update the contact information.
- Change In Address: If you have changed your address in your aadhaar card, remove the linking of the old one to maintain accuracy and attach the updated one.
- Closing Demat Account: If you are closing your Demat account, you may want to de-seed your Aadhaar before shutting down the account to prevent future misuse.
Common Issues While Aadhaar De-Seeding
While de-seeding your Aadhaar from your Demat account may be the right choice for you, it’s important to understand the consequences of doing so.
- Slower Transactions: One of the benefits of Aadhaar seeding is the ability to complete transactions more quickly due to faster identity verification. Without Aadhaar, your transactions will take longer time as additional steps might be required for verification.
- Increased Paperwork: With Aadhaar de-seeded, you may need to provide more physical documents like a PAN card during certain financial transactions, such as buying or selling stocks or mutual funds.
- Regulatory Compliance: If new regulations require Aadhaar seeding for specific financial transactions in the future, you may need to re-link your Aadhaar to your Demat account to remain compliant as per the rules.
- Difficulty in Stock Transfer: If you want to transfer your stocks use Aadhaar for identification purposes may become easy to access. Once you de-seed your Aadhaar, it may become harder. You might need to provide alternative identification documents, which could be less convenient.
Consequences of Aadhaar De-Seeding
Before proceeding with Aadhaar de-seeding, it’s essential to consider a few factors:
- Future Regulatory Changes: Aadhaar seeding rules are subject to change. While de-seeding seems necessary now, but keep in mind, that future regulations could require Aadhaar linking again.
- Data Security Measures: If your primary reason for de-seeding Aadhaar is privacy, check if your Broker has introduced enhanced security measures. Many big financial institutions now have stringent data protection policies that minimize the risk of data misuse to secure and safe financial transactions.
- Ease of Transactions: Without Aadhaar linked to your Demat account, some transactions may become more time-consuming or require additional verification steps. Make sure this is something you’re willing to deal with, if necessary due to any information change, and seed it again once you update the changes.
Final Verdict
In conclusion, Aadhaar de-seeding from a Demat account is a simple process but should be done only after a deep consideration of the pros and cons. While it can be done for data privacy and regulatory changes, it will slow down financial transactions and increase paperwork.
If you’ve decided to de-seeding, follow the steps as explained above, it is recommended to consult your Depository Participant before submitting a written request, and providing the necessary documents. Make sure to verify the consequences of de-seeding and re-seed it after updating your aadhaar (like name change or address change), if you wish to continue the services of the same.
