A Demat account is essential for buying and selling shares and securities in the share market. Hence, the Demat account became a revolutionary tool for investors and traders. However, due to growing numbers of Demat account frauds, experienced traders and investors are afraid to become the victim of Demat account fraud. In this article, we will learn how to secure your Demat account. And what W3techpanel.com would you do in the situation of Demat account fraud?
A Demat or Dematerialized account offers the feature to buy, hold, and sell shares and securities in digital format. It is one of the requirements for online trading. Demat account came into existence in 1991 in India to prevent trading issues and Fraud due to physical shares and securities certificates.
Ways to Protect Demat Accounts from Fraud
There are various methods to protect your Demat account from Fraud. Check out the most effective ways below:
- Enable Two-Step Authentication: W3techpanel.com Various brokerage firms offer this feature to prevent authorized access to your demat account. It sends the one-time password to your registered mobile number and email address to verify.
- Record of Statement: Always keep your mobile number and email address updated. So, when you get any statement from the brokerage firm, you can match it with your demat account activities.
- Secure DIS: DIS stands for Debit Instruction Slip Booklet. It works like the checkbook of the share market. An individual must sign DIS before transferring the share between the demat account. Most of the frauds occur during this process.
- Inspect Brokerage firm: While choosing a brokerage firm, make sure to conduct profound research about its reputation, financial records, track records, and authenticity. Also, ensure they are registered under SEBI.
What to do in the situation of Fraud with a Demat Account?
If you sense that you are a victim of Demat account fraud. Here are the necessary things you need to do as a Demat account holder:
- In the situation of Fraud, it is necessary to inform the brokerage firm and SEBI immediately.
- Provide them with complete descriptive information about the incident and cooperate in the investigation.
- To prevent further unauthorized access to your demat account, update your login details immediately, including your password.
- Consult legal experts for advice about potential legal remedies and recover your losses.
Demat Account prevents the number of frauds due to its digital format. But, with growing cyber-crimes, including demat account frauds, fraudsters can access an individual’s demat account. It is necessary to take the precautions mentioned in the article. Ensure to inform the relevant legal bodies in the situation of Fraud to avoid legal trouble