In India, it is impossible to invest in the stock market without a demat account. The Securities Exchange Board of India (SEBI) has made it a mandatory prerequisite to have an online demat account in order to be able to buy and sell securities. That said, simply knowing how to open a demat account is not enough. You should also know how to operate and manage your account properly. Here’s a guide that can help you. But before that, let’s quickly take a look at why demat account management is important.
Over the years, there have been several instances where stock brokers have misused their powers and conducted unauthorized transactions on their customers’ demat accounts without their knowledge. However, all of this can be prevented if you know how to operate and manage your account. That’s why it is important to learn how to manage your demat account.
These days, almost all stock brokers offer 2-in-1 accounts that combine both the demat and trading account. By offering demat account management services as part of their service portfolio, stock brokers have essentially made operating demat accounts an easy affair.
There are currently two different ways through which you can manage your online demat account. Here’s a quick look.
1. Through your stock broker’s trading platform
As you’ve already seen above, many stock broking platforms offer demat account management services. All that you would need to do is log into your stock broker’s trading platform using the user credentials given to you and navigate to your demat account section.
From here, you can carry out a host of tasks like transferring the shares from your demat account to another, view your demat account statement, and download contract notes for each of your stock market transactions, among others.
2. Through the depository’s own web platform
Alternatively, you can also carry out the above-mentioned tasks and more through the depository’s own web platform as well. When you open demat accounts with a stock broker, you are also handed out user credentials for the same, to be used for operating demat accounts.
All that you need to do is visit the depository’s website (it is either CDSL or NSDL) with whom you have a demat account with and log in using the credentials given to you. Once you’ve logged into your account, you can do all of the above-mentioned tasks, including freezing your Demat account temporarily.
Now that you’re aware of demat account management, go ahead and try it out. On the other hand, if you don’t already have one, don’t worry. Just reach out to Motilal Oswal right away. You can open an online demat account within just a few minutes for free.
Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account