InvestorQ : How to ensure the best usage of your demat account?
Mahil Khan made post

How to ensure the best usage of your demat account?

Answer
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swati Bakhda answered.
2 years ago


Remember, demat account gives you a lot of power in your hands. More so if you have an online demat account. You get most of the power of electronic ownership of shares at your fingertips. But there is a major onus off you and that is to ensure that you use your demat account in the best possible way. There are 3 key aspects to this debate… Firstly, you need to ensure that your physical shares are all converted into demat at the earliest. Secondly, follow the proper process for buying and selling demat shares by linking it to your bank account and to your trading account with your broker. Lastly, security matters a lot, especially when you are operating your trading account and demat account online. Don’t leave your Debit Instruction Slip (DIS) booklet here and there. Don’t leave signed DIS with your broker and don’t ever access your online demat account from a cyber café or from public wi-fi systems.
It is also good to understand the structure of the demat process as depicted in the chart above. The principal depositories are either CDSL or NSDL and you can have your account with one of them. The DP (Depository Participant) is the representative of NSDL and CDSL and you only interface with them. This is your network as far as your demat holdings are concerned.