Indian Product News

  • Business
    • Agriculture
  • Pharmaceutical
    • Laboratory
    • Chemical
  • Machinery
    • Automobile
    • Brass
    • Casting
    • Cooling Towers
    • Transformers
    • Water Plant
  • Electricals
    • FRP/GRP
    • Oven
  • Lifestyle
    • Beauty
    • Fashion
    • Health
    • Foods
  • Trending
Home  /  Finance  /  5 Simple Dos And Don’ts If You Have A Demat Account

5 Simple Dos And Don’ts If You Have A Demat Account

Vijay Aegis July 18, 2018 Finance Leave a Comment

A demat account is a record and an ownership statement. It is like a bank account where you maintain your equity holdings. Remember, while your DP helps you to open the account, the shares are actually resident with the depository; NSDL or CDSL. Being government backed organizations your shares are absolutely safe. As an investor holding the shares you are the beneficial owner (BO) in this case. To ensure your safety and security you need to follow some basic rules to get the best out of your demat account.

5 Dos for your demat account

  • You must make it a point to regularly verify your transaction statement carefully for all debits and credits in your account. In case of you see any unauthorized debit or credit, inform your DP or CDSL/NSDL. While the DP will make the statement available to you quarterly and annually, you must opt for the online system to be able to view and check your statement on a real time basis.
  • The next point follows as a logical corollary. Handle your Delivery Instruction Slips (DIS) Book issued by the DP very carefully. Insist that the DIS numbers are pre-printed and your account number (client id) is also pre-stamped on each DIS page. Don’t use and don’t accept loose leafs from your DP. Don’t leave signed DIS slips with your broker, DP, sub broker and above all, make it a point to keep it in a secure and safe place.
  • Some dos you need to remember when you fill up the DIS. Always mention the details like ISIN, number of securities accurately. If in doubt, contact DP or your broker immediately. The broker may ask you for a power of attorney to simplify the Demat process. While that is convenient, there is no onus on you to accept that arrangement.
  • There is something called freezing the account, in case you are not going to transact on your DP account. In case you are not transacting frequently make use of the freezing facility provided for your demat account. This will ensure that there can be no debits and credits to your demat account unless you give a letter to de-freeze the account. This is very useful when you are likely to be abroad for a prolonged period of time.
  • While sending securities for demat, record the distinctive numbers of securities sent along with the folio number of the share certificates. Ideally, keep a copy of the certificate with you. Make it a point to intimate any change of address or change in bank account details to your DP immediately. Address and bank mandate change require your signature and any delay can create problems for you in the future.

5 Don’ts for your demat account

  • When you fill up your DIS, avoid over-writing, cancellations, misspellings, of the name and quantity of securities. Ensure that the ISIN code and the number of shares are written with precision and make it a point to double check
  • Do not issue demat delivery instruction slip from any other family members, friend’saccounts? Issue the DIS only from your own demat account. Also don’t offer your shares to others. When you are travelling avoid leaving signed DIS slips with your family members to take care of emergencies. Any such laxity can cause you damage.
  • Don’t pay any of the demat charges in cash. Ideally all charges should be by cheque or by online bank transfer, however small the fee may be. This is in your interest as it will avoid any misuse of cash.
  • Don’t sell more shares than you have in your demat account. While the broker will check your balance before executing in case of online transactions, the onus is still on you. Always make it a point to check the clear balance in your demat account before you issue any DIS. This is more so in case of T2T stocks because these T2T stocks cannot even be closed intraday.
  • Don’t do offline transfer of shares to another demat account unless it is a genuine cases. The regulator and the depository keep a close tab on off-market transfers and if it feels that the transaction is not genuine, then you can get a notice to explain yourself. Avoid such situations as it is not ethical.
  1. Do not sign blank Delivery instruction slip(s) while meeting security payin obligation
Tags: Demat Account
Previous Article
Next Article

About Author

Vijay Aegis

Vijay is a compulsive blogger who likes to educate like-minded people on various new technologies and trends. He works with Aegis SoftTech as a software developer and has been developing software for years. Stay Connected to him on Facebook and Google+

Related Posts

  • What is Fundamental Analysis in Share Market?

    September 27, 2018

Leave a Reply

Cancel reply

Popular Posts

  • Brass Current Terminals Are Basic Electrical Connectors Applied To Electronics Piyush Agrawal Brass
  • Why You Buy Peanut Butter When You Can Make It At Home? yashpal aegis Trending
  • Your Expensive Furniture Needs Your Attention! Vijay Aegis Business
  • Why You Should Buy Zinc Cabinet Handles Vijay Aegis Business
  • Types of Fire Fighting Equipment Vijay Aegis Business
  • Give Skin Fit Denims A Break And Buy Salwar Kameez From Indian Online Shop Piyush Agrawal Beauty
  • What Choices Do The Power Transformers Manufacturers Offer To Their Buyers? yashpal aegis Transformers
  • Why You Should Consider Ayurvedic Companies For Franchise Vijay Aegis Trending
  • Refilling of Fire Extinguishers: Why, How and When to do it Vijay Aegis fire
  • Top Car Accessories : To Give Most Astonishing Look To Your Car Piyush Agrawal Automobile
  • conveyor rollers manufacturers
    Checking the Basics about Conveyor Rollers chirags Thumar Business
  • Activated Carbon and its Manufacturing Process Piyush Agrawal Chemical
  • Types of Fire Suppression Systems Vijay Aegis fire
  • Electrical Cable: Market And Manufacturing Vijay Aegis Electricals
  • Pultruded FRP Cooling Towers – How to Clean and Maintain the Device? Piyush Agrawal Business, Cooling Towers
  • The Difference Between Wet and Dry Cylinder Liners yashpal aegis Automobile
  • Power Cables
    Know the Types of Power Cables Rajnikant Business
  • shaft-forgings
    How are Shaft Forgings Manufactured? Rajnikant Machinery
  • Oil Lubrication In Double Roll Crusher- Concept Explanation Vijay Aegis Machinery
  • Guar Gum Health Benefits and Its Nutritional Values Vijay Aegis Healthcare
  • Square Cooling Tower
    Your Round Cooling Tower Doesn’t Know How To Chill – Keep It Safe From Icy Winds Of Winter Sandeep Aegis Cooling Towers
  • Several Choices In Fire Protection Systems Can Make Indian Facilities Feel Secure Vijay Aegis Business
  • Technicalities Behind Relay Control Panel and How They Operate Piyush Agrawal Electricals, Machinery
  • How Pharma Grade Guar Gum Powder Is Helpful For Medical Industries? Rizwan Aegis Agriculture
  • A Steps and Guide to “Transformer Oil Filtration” Piyush Agrawal Transformers
  • PVC Flexible Cables For Green Energy Solutions Vijay Aegis Trending
  • What Types Of Brass Pipe Fittings You Can Get From Supplier? Vijay Aegis Brass
  • Cooling Towers In India
    An Insight On Cooling Towers In India Piyush Agrawal Cooling Towers
  • Cylinder Sleeves “The Machine Bandages”- A Must Have All In Industries yashpal aegis Automobile
  • Toxic and Harmful Ingredients Should be Avoided by Tooth Paste Manufacturers Sandeep Aegis Healthcare
  • Transformers Repairing Guide : How To Seal Leak Transformer Effectively Piyush Agrawal Transformers
  • Brass Nipple Fittings Have Come A Long Way Vijay Aegis Brass, Casting
  • Spices Exporters Hit By Hiked Spices Testing Fees In India Sandeep Aegis Foods
  • What if bitumen help in getting ductile concrete? Sandeep Aegis Machinery
  • Stay Beautiful, Stay Glamorous – Check Out The Most Designer Party Ware Sarees In Indian Stores Piyush Agrawal Fashion
  • Learn What Industrial Oven Manufacturers Say About Their Product Vijay Aegis Oven
  • The Rich Potential Of Industrial Furnace Manufacturers Vijay Aegis Oven
  • How To Maintain Or Clean Industrial Oven? Vijay Aegis Oven
  • How To Add Cumin Seeds In Daily Food? Rizwan Aegis Agriculture
  • Quality Of Prosthetic Parts Really Matters For Consumers Rizwan Aegis Casting
  • Indian Turmeric Exporters Claim That a Cup of Turmeric Tea Treats Alzheimer yashpal aegis Foods
  • How Standard Sand Is Useful For Testing Cement And Other Construction Materials yashpal aegis Machinery
  • Fiberglass Molded Gratings Amalgamates Resins And Client’s Well-Being Together Vijay Aegis FRP/GRP
  • Use Lump Breaker Machine Like A Professional Vijay Aegis Machinery
  • FRP Molded Gratings To Lower Corrosion Costs Vijay Aegis FRP/GRP
  • Private Label cosmetic Products for safe and healthy skin Rizwan Aegis Beauty
  • The Remarkable Contribution Of The Laboratory Furnace Manufacturers To Various Technological Domains Vijay Aegis Oven
  • Testing Of Concrete With Specialized Equipment yashpal aegis Machinery
  • Designers Bring Top Commandments Of Wearing A Saree Piyush Agrawal Beauty, Fashion
  • Learn To Remove Corroded Brass Nut From Indian Brass Connectors Suppliers Piyush Agrawal Brass

Recent Posts

  • How are Shaft Forgings Manufactured?
  • Know All About High-Voltage Power Supply
  • Why The Market Of Natural Cosmetics Is Flourishing?
  • How To Get Diverter Valves For Pneumatic Conveying System?
  • Why Are Crankshaft Forgings So Important?

Recent Comments

  • All You Need to Know About Power Cables Emart Spider on Know the Types of Power Cables
  • Sharon Wilson-Smith on Types of Fire Suppression Systems
  • Jaque Christo on Checking the Basics about Conveyor Rollers

Random Posts

  • Cooling Towers In India
    An Insight On Cooling Towers In India
  • Elaborate The Term “PCD Pharma Monopoly” Company
  • Tray Dryer
    Tray Dryer Operation and Uses in the Pharmaceuticals Industry
  • Hotel Business
    Trends in the Hospitality and Hotel Business 

Popular Posts

  • Brass Current Terminals Are Basic Electrical Connectors Applied To Electronics
  • Give Skin Fit Denims A Break And Buy Salwar Kameez From Indian Online Shop
  • Top Car Accessories : To Give Most Astonishing Look To Your Car
  • Why You Buy Peanut Butter When You Can Make It At Home?