Dos and Don't For Existing Investors In Demat And Trading Account

Introduction

A Demat Account streamlines the holding of securities in electronic format, while a trading account facilitates the buying and selling of these securities. For investors, adhering to essential do's such as regularly monitoring account statements, updating personal information securely, and keeping passwords confidential ensures financial safety.

More About Demat Account

Here are some of the notable features of a Demat Account:

Free Account Opening

HDFC Bank offers free online Demat Account opening.

Investment Tracking

Track your investments and get account statements anytime via NetBanking.

Wide Range of Securities

You can invest in equities, derivatives, fixed-income instruments, ETFs, and Mutual Funds.

Easy Fund Transfer

Link your HDFC Bank Savings Account to your Demat and Trading Account for a hassle-free fund transfer.

Basket Investing

Invest in multiple stocks and ETFs at once using the one-click investment option.

The following are some of the benefits of a Demat Account:

Safe and secure

Eliminates the risk of theft, loss or damage associated with physical share certificates.

Convenience

Facilitates easy transfer and trading of securities online without paperwork.

Quick settlements

Ensures faster transactions and settlements compared to physical certificates.

Efficient management

Simplifies the process of monitoring and maintaining investment portfolios.

Cost-efficient

Reduces costs related to stamp duty, handling charges and other paperwork-related expenses.

Access to a wide range of securities

Allows holding and managing various types of investments, including shares, bonds, and mutual funds, in one account.

To learn about the documentation, visit your nearest HDFC Bank Branch.

Addidional Infornation

  • NSDL's various investor-centric initiatives - Dos and Don't for investors/Demat account holders
  • NSDL has consistently introduced initiatives focused on investor education, awareness, and timely services to ensure investor safety and prudence. These efforts aim to enhance investor protection and inform investors about their rights. Some key initiatives, including dos and don'ts for investors, are:
  • NSDL SPEED-e Mobile APP:
  • Investors can download the NSDL SPEED-e Mobile App to track and view the holdings and value of their Demat account.
  • The app is available on Google Play and the App Store. To download it from the Google Play Store.
  • eServices (SPEED-e):
  • Investors can register for the SPEED-e facility (https://eservices.nsdl.com) to submit market and off-market instructions online. This facility also allows investors to submit mutual fund redemptions and confirm off-market instructions. Additionally, e-Token users of the SPEED-e facility can freeze their Demat Accounts.
  • eServices (IDeAS):
  • IDeAS lets investors view their Demat Account holdings, including transaction details and values. It also offers value-added services like viewing and downloading NSDL-CAS, e-voting, and Form 26AS.
  • NSDL SMS Facility
  • NSDL offers an SMS Alert service for Demat Account holders, providing alerts for various transactions and updates, including:
  • All debit transfers
  • Credits for IPO, stock splits, and bonuses
  • Failed instructions
  • Overdue instructions
  • Change of mobile number
  • Change of address
  • Debit of Mutual Fund units
  • Invocation of pledged securities
  • Registration and de-registration of Power of Attorney
  • Modification or cancellation of nominee names
  • Initiation or confirmation of pledge instructions
  • Mutual fund redemption requests and acceptance/rejection by RTA
  • SMS alerts related to Tender Offer instructions for blocking or debiting shares in Demat accounts.
  • Investors should sign up for NSDL's SMS alerts to track their demat accounts.
  • Update opt-in/opt-out nomination online:
  • Investors can register for opt-in/opt-out nomination with select participants at:
    https://eservices.nsdl.com/instademat-kyc-nomination/#/login.
  • Update email ID and income range online:
  • Investors can update their email and income range in their Demat Account at:
    https://eservices.nsdl.com/kyc-attributes/#/login.
  • Register for eCAS:
  • Investors can sign up to receive NSDL-CAS electronically at the NSDL microsite:
    https://nsdlcas.nsdl.com
  • Further, investors are requested to note the Dos and Don’ts while operating their Demat Accounts:
  • Ensure you open a Demat Account with a SEBI registered Depository Participant. Thoroughly read all documents before signing.
  • Keep your email ID and mobile number updated in your Demat Account to get regular alerts from NSDL.
  • Never share your OTP or password with anyone; they are for your use only.
  • Avoid downloading unfamiliar apps on your device, as they may access your confidential information.
  • Create unique, complex, and strong passwords for online platforms and change them regularly.
  • Carefully review the scope and implications before granting Power of Attorney to intermediaries like Stock Brokers or PMS to operate your Demat Account.
  • Regularly check your NSDL-CAS statement, whether received electronically or by post.
  • When you update any details in your Demat Account (address, bank details, mobile number, or email ID), ensure you get a Client Master List or confirmation from your participant.
  • Always monitor alerts (SMS or email) from NSDL regarding debits or changes in demographic details.
  • Keep your Delivery Instructions Slips in a safe place.
  • Make sure to nominate someone in your Demat Account.
  • For investor complaints or grievances, contact:
    • [SCORES (SEBI's web-based grievance redressal system)]
    • NSDL
    • Or email the designated email IDs of the Depository.
  • Additionally, NSDL has published the Investor Charter on its website. You can access it here.

Frequently Asked Questions

The four basic rules for investors are:

  • Diversify your portfolio to reduce risk.

  • Invest for the long term to benefit from compound growth.

  • Regularly review and rebalance your portfolio to stay aligned with your goals.

  • Avoid emotional decisions by sticking to a well-thought-out plan.

The 10/5/3 rule of investment is a simple guideline suggesting expected annual returns: 10% from stocks, 5% from bonds, and 3% from cash or Savings Accounts. This rule helps investors set realistic expectations for their portfolio's performance over the long term based on historical averages.