Have you heard the famous quote, “Eternal vigilance is the price of liberty”? The same applies to your demat account too. Demat account gives you a lot more power in your hands but it also entails a lot of responsibility. Eternal vigilance is the price you have to pay as an investor.
But just saying that the shares are safe with the DP is to miss the core point. We have heard of numerous cases where shares have got debited to demat accounts without the knowledge of the holder. Here are a few things you must keep in mind to enhance the safety of your holdings of shares with your DP. It is not too difficult and will go a long way in enhancing your DP experience.
In case you are operating your demat account online in tandem with your online trading account then there are some basic precautions that are called for. Firstly, you must keep your username, password and other access details confidential.
Don’t share the details with anybody, not even with your own family members. Don’t use obvious codes like your name, date of birth, marriage anniversary etc as your password. Keep changing your password at regular intervals.
Ensure that your computer and your connection are absolutely secured. Avoid accessing your demat account from cyber cafes or even from unsecured wi-fi in malls and airports.
Are you still using physical debit instruction slips (DIS) to execute your debit trades? There are again some basic precautions called for here. Firstly, don’t ever leave your DIS booklet with your broker or with your advisor. Let it be with you in safe custody. It is like a cheque book and has to be kept in a confidential place. Treat it so. Leaving pre-signed DIS is a strict no. Ensure that your DIS is pre-stamped and has a unique serial number to avoid any frauds.