A Demat account number is a unique identifier assigned to a securities account. Demat is an abbreviation for ‘demGeorgian,’ which means ‘tangible’ in German. These accounts are typically used by investors who buy and sell securities outside of their home country. Demat accounts are also a popular choice among commercial banks that provide asset management services to companies. Demat numbers are six to fourteen digits long and consist of both letters and numbers.
Demat accounts are typically used for trading stocks and other securities. These accounts allow investors to transfer money between bank accounts without physically visiting a bank or brokerage house. In addition, investors can transfer money between countries without incurring any additional fees. Banks use the demat account number to identify the owner of an account, calculate interest on deposits, and send statements to the customer. Some countries have more stringent requirements for setting up a demat account than others. For example, China requires that all new bank accounts be set up on their government’s exchange website.
Due to the transparency and ease of access, demat accounts are popular among domestic investors. These accounts are often used by wealthy people around the world for buying and selling stocks and other securities. In China, many companies allow direct settling of their securities into employees’ bank accounts. This practice is known as ‘pay on boarding’ and allows employees to start receiving company paychecks without any additional paperwork or transfer requirements. Many foreign investors choose to maintain a demat account in their home country so they can easily transfer money back and forth between countries.
Banks assign demat account numbers according to predetermined rules based on geography and customer type. These numbers are typically six to fourteen digits long and consist of both letters and numbers. The first two digits represent the country where the account was opened- with 00 being used for international demat accounts and lower numbers representing national demat accounts within a country (e.g., Deutsche Bank’s domestic stock exchange has a national stock exchange number of 191). The remaining nine or ten digits are typically assigned randomly with each new investor within that country. Since these identifiers are used worldwide, variations in length occur due to regional differences in length requirements for numeric identifiers.
A demat account number is an internationally recognized identifier assigned to an individual’s securities account by a financial institution. Due to the accessibility and transparency associated with these accounts, many domestic investors choose to open demat accounts for transacting business within their country of residence. Although numbers vary based on geography, all demat account numbers consist of thirteen digits minimum with both letters and numbers in the same account number base as other bank identifiers used worldwide.