InvestorQ : What are some of the dos and donts of a demat account?
Anu Biswas made post

What are some of the dos and donts of a demat account?

Neelam Naik answered.
2 years ago

First, here are some major dos for you

· Register for internet based facility to monitor your demat account yourself. Contact your DP for details

· Register for SMS Alert facility and obtain alerts for any debits or credits due to a corporate action, in your demat account

· Accept the DIS book from your DP only if each slip has been pre-printed with a serial number along with your demat account number and keep it in safe custody

· Always mention the details like ISIN, number of securities accurately. In case of any queries, please contact your DP or broker

· Ensure that all demat account holder(s) sign on the DIS

· Strike out the any blank space on the slip

· Cancellations or corrections on the DIS should be signed by all the account holder(s)

· Submit the DIS ahead of the delivery date for all type of market transactions. DIS can be issued with a future execution date

· Intimate any change of address or change in bank account details to your DP immediately

· Please verify the service records of the issuer before sending certificates for demat. The list of companies whose demat request are pending is published on the web

· Before sending securities for demat, record the distinctive numbers of the securities sent

· Before granting Power of Attorney(PoA) to anyone, to operate your demat account, carefully examine the scope & implications of powers being granted

· Power of Attorney (POA) is not mandatory for opening a demat account

· The demat account has a nomination facility and it is advisable to appoint a nominee, in case of sole account holders

· Ensure that, both, your holding and transaction statements are received periodically as instructed to your DP. You are entitled to receive a transaction statement every month if you have any transactions and once a quarter if there are no transactions in your account

· Check your demat account statement on receipt. In case you notice any unauthorized debits or credits, contact your DP for clarification. If not resolved, you can immediately escalate the matter to the Depository (NSDL / CDSL) and then to SEBI if not resolved satisfactorily.

Some don’ts to remember in operating your DP account

· Do not leave your instruction slip book with anyone else

· Do not sign blank DIS as it is equivalent to a bearer cheque

· Avoid over-writing, cancellations, misspellings, changing of the name and quantity of securities

· Follow instructions meticulously to avoid any surprises