MONEY MATTERS

Your demat account is generally secure, thanks to safeguards by depository participants (DPs). But you cannot rule out frauds. Sometimes a dishonest DP official may transfer your shares to another account for personal gain. So follow these steps to make your demat account more secure:

Even if you don’t trade your shares, track your demat account frequently. This is just like keeping a track of your savings bank account. Many DPs let you track your demat account any time online. Printout and file all your DP statements.

Always keep your client delivery instruction slips under lock and key. Using the slips, securities can also be transferred directly from your demat account to another account (without a broker or stock exchange) in “off market” trades.

Never keep signed instruction slips. Sign one only for a transaction. If you lose a slip then there is the danger of your shares to be transferred to some other accont.

Hand the slips only to a DP official personally, or to your registered broker. When you are handing over the slip it is a must to get the broker’s contract note.

If you trade on-line, you must safeguard your password. Alpha-numeric ones (comprising letters and numbers) are best. Change your password regularly.

Filed under: Uncategorized by SAJ