Demat accounts are counted among the prerequisites for participating in the securities market in India. You can open a demat account online with any authorized depository participant in the country. In addition to a dematerialized account, you must also have a trading account and a linked bank account. With the application of demat accounts and trading accounts, the process of investing has become extremely transparent, seamless, and swift. In this article, we shall discuss some important tips to efficiently manage your demat account.
Ways to Efficiently Manage Your Demat Account
The process of opening a demat account online is simple. You can select a depository participant and access their official website to start the account opening process and submit the required information and supporting documents. Here are some effective measures you can take to efficiently manage your demat account
Open a Dematerialised Account with a credible depository participant:
It is pivotal to carry out adequate research before selecting a depository participant to open your demat account with. You must choose a DP with credibility in the market. If you are opening a three-in-one account (trading, demat, and bank account), you must research whether the financial institution’s broking app has all the latest technical features to facilitate trading.
Set a strong password for your demat account:
To protect your demat account from unauthorized access or misuse, you must set a strong password for the account. You must not share the account login information with anyone.
Enable two factor authentication to protect your Dematerialised account:
Another way to efficiently handle your demat account is to enable two factor authentication. This way, there would be an additional layer of security to ensure safe access to your account.
Use the official platform of your DP or stock broker:
You must use the official booking app or website of the stockbroker or financial institution to access your Dematerialised account. The usage of third party platforms to access your demat account can be fraught with multiple security risks.
Regularly check your demat account:
Even if you are not trading in the securities market regularly, you must periodically log in to your demat account and check the holding statement and activity statement. Should you identify any unauthorized activity, you must report the same to your DP or stock broker without delay.
Keep your communication details updated in the demat account:
Your demat account should always have your active mobile number and email address mentioned in the relevant section. stufferdnb Should you change any of your communication details, you must update them in the DP’s app and/or the broking app.
Pay your demat account charges on time:
Another key facet of efficiently managing your Dematerialised account is to always pay your demat account charges on time. Your DP may charge account opening charges, Annual Maintenance Charges, and other charges as mentioned during the time of opening the account. You must read the account opening form and the schedule of charges to have clarity on all the charges associated with your Dematerialised account.
Invest in line with your goals:
With your demat and trading account, you can invest in a wide range of securities, including shares and mutual funds. While selecting which financial assets to invest in, you must be mindful of your investment goals, desired risk exposure, investment horizon, and the intended degree of portfolio diversification. It is also advisable to check your investment portfolio to gauge the gains/ losses on various assets therein.
The Bottomline
Opening a demat account online is a simple and swift process. With a functional Dematerialised account and a linked trading account and bank account, you can place buy and sell orders in the securities market conveniently and have the securities transferred to and from your Dematerialised account. The tips discussed above can help you in efficiently managing your demat account.