How to save a demat account?

Demat account in India is used to hold Shares, Mutual Funds, Bonds, ETD, etc. in electronic format for short to long term. Demat Account Safety is one of the major concerns of investors. But with a few simple steps, you can save your demat account from any fraudulent activity of the broker or its relationship managers.

Steps for safe demat account

1. Remove the demat Power of Attorney (PoA). Many brokers now allow you to sell your demat holding without PoA. This is done by re-entering the password and authorizing the broker to withdraw shares from your demat account while placing the sell order online. The authorization is valid for 1 day.
2. Make sure that the shares you bought are credited in your demat account on T+2 days where T is the day of trading.
3. Keep your phone number and email address updated with the stockbroker.
4. Check SMS and emails from the depository for demat transactions.