If all the buzz around investing in the share market has excited you to do the same, you are not alone. The way things are going, students, salaried employees, retirees, homemakers, just about everyone today is trying their hand at trading to earn an extra buck.
If you plan to do the same, one of the prerequisites is opening a demat account. Sounds easy, doesn’t it?
Yes, it is. Open Demat account is a simple and easy process that does not take more than a few minutes. But only because it is easy, doesn’t mean it requires no homework.
There are several options when it comes to choosing the platform for the best Demat account in India, however, there are certain things that you need to keep in mind when operating your Demat account.
8 Points To Remember When Operating Your Demat Account in India
Read on as we give you a checklist of 8 points-to-remember:
1. Bring Your Shares In Dematerialized Form
You may probably know this, but just to reiterate, you need to bring all your holdings in the dematerialized form. This is suggested t
2. Give Your Statements A Thorough Check
Verify the statement to check for the debits and credits. In case you see a discrepancy, report the same to your DP and the CDSL/NSDL if required. Do not wait for the statement from the Depository Participant to escalate the issue.
3. Fill Up The Dis Carefully
When you need to sell shares, you are required to fill in the Debit Instruction Slip. Double-check the names, numbers and other entries. Make sure that you avoid mistakes, overwriting misspellings etc.
4. Keep The Payments Digital
You should never make any kind of demat account charges in cash. Make sure you always use an electronic mode to pay. Paying by cheque, through a debit/ credit card or online banking will ensure that there is no misuse of the cash paid. Keep in mind that SEBI and demat regulate the payments and will prevent any payment by cash.
5. Understand Your Demat Account
While you may be past the stage of ‘how can I open a demat account online’, however, it is equally important that you understand how your demat account works.
Make sure you understand the nitty-gritty of your demat to make the most of it. Choosing the right broker can have a significant effect on the way you trade. You need to understand the terms and conditions along with the fees that come with account opening.
6. Keep The Demat Account Active
One of the key points to remember is that you need to stay active with your demat account. Leaving it idle for too long is not a good idea. If you are planning to take a break for some reason, it is highly recommended that you have the option to freeze your Demat account. With this, you can ensure that there are no transactions without your authorisation.
7. Avoid Transferring Shares
While the SEBI allows offline share transfer, it is best suggested you avoid it as far as possible. Transferring shares with your family or relinquishing them can be avoided unless you feel that they are required. It is not just a regulatory hassle but is often considered unethical.
8. Reach Out To Your Broker
In case there are things about your account or a transaction or anything that you cannot understand, reach out to your broker. Most online portals offer quick and proactive customer care survive that can respond to your queries instantly.
Let’s Wrap It Up
Trading requires you to invest your hard-earned money. While the volatility of the share market can be exciting and alluring, you need to be in control of your transactions as well as your emotions. Choosing the best Demat account in India can help you with easy transactions and also offer you recommendations.
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