How to enjoy hassle-free operation of your demat account

Simple rules which you need to follow meticulously to enjoy hassle-free operation of your demat account.

Nov 08, 2016 12:11 IST India Infoline News Service

We have written many articles providing details about dematerialisation of securities, advantages of holding shares in demat or electronic form and how to open a demat account. The below article provides simple rules which you need to follow meticulously to enjoy hassle-free operation of your demat account.
  • Ensure that, both, your holding and transaction statements are received periodically as instructed to DP (depository participant). You are entitled to receive a transaction statement every month if you have done any transactions and once a quarter if there have been no transactions in your account.
  • Check the statement on receipt. In case you notice any unauthorized debits or credits, contact your DP for clarification.
  • Inform your DP in case of change in your address, telephone number, etc as early as possible. While sending securities for demat, record the distinctive numbers of the securities sent.
  • Check the demat performance of the issuer company with your DP before deciding to send certificates for demat. The list of companies whose demat request are pending is published at
  • Just like a cheque book, keep your delivery instruction slip (DIS) book in safe custody.
  • Accept the DIS book from your DP only if each slip has been pre-stamped with a serial number and your demat account number.
  • Always mention the details like ISIN (International Securities Identification Number), number of securities accurately. If in doubt, contact DP or your broker.
  • Authorize any corrections, over-writing or cancellations on the instruction slips by signing against the same.
  • Ensure that all joint holders of the demat account sign the slip.
  • If there is space for multiple instructions and it is not used fully, please strike out the blank space for furnishing securities details.
  • Add nominee: Nomination smoothens the process of transmission of your securities to your heirs, upon demise.
  • Do not leave your instruction slip book with anyone else.
  • Do not sign blank DIS as it is equivalent to a bearer cheque.
  • Avoid over-writing, cancellations, misspellings, changing of the name and quantity of securities.

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