Due to their simplicity and safety, demat account have grown in popularity among investors in India. With the ease of not having to deal with actual share certificates, a Demat account allows investors to purchase, sell, and hold shares that are held in electronic form. To keep your money safe, it is essential to safeguard the security of your Demat account given the surge in digital theft and frauds. We will talk about the precautions investors can take to keep their Demat account secure in this article.
Pick an Honest Depository Participant
Selecting a trustworthy depository participant (DP) is the first step in protecting the security of your Demat account. Investors should select a DP with a solid track record and reputation. in the market or industry. To avoid fraud, it’s crucial to do thorough research and pick a DP that is accredited by the National Securities Depository Limited (NSDL) or the Central Depository Services Limited (CDSL). Learn more about what is demat account?.
Keep your login information secure.
In order to prevent unwanted access to their Demat account, investors must keep their login information secure. It’s essential to pick secure passwords and to update them frequently. Additionally, it’s crucial to keep the login information private and avoid sharing it with anyone. Investors are required to log out of their accounts each time they are done using them.
Enable Two-Factor Authentication
The Demat account is further secured by two-factor authentication. Each time an investor logs into their account, a special code that has been issued to their registered mobile number or email address must be entered. This makes sure that the account can only be accessed by those who are authorized. Learn more about what is demat account ?.
Monitor Your Account Frequently
Investors are required to regularly check their Demat account for any suspicious activity. They need to monitor their portfolio of investments and make sure that all of the transactions are legitimate. Any abnormalities or discrepancies must be immediately reported to the DP in order to take corrective action.
Avail of Security Features Offered by DP
To further improve the security of their customers’ Demat accounts, many DPs offer extra security features. These qualities consist of:
For each transaction completed in a customer’s account, DPs send an SMS alert. This makes it easier for customers to monitor account activities.
Investors can set transaction amount restrictions to stop any fraudulent transactions by doing this. Learn more about what is ?
Some DPs provide virtual keyboards for users to submit their login information. This ensures that keyloggers or other malware cannot record their login credentials.
One Time Passwords (OTP) for Transactions:
DPs send OTPs to the registered mobile number or email address for every transaction. This ensures that only the authorized person can make transactions on the account.
To maintain the security of their Demat account, investors must use these security features offered by their DP. Learn more about what is demat account ?.
In order to protect investments, you need a Demat account. Investors must select a trustworthy DP, safeguard their login credentials, enable two-factor authentication, monitor their accounts frequently, take advantage of the security features provided by the DP, keep their contact information up to date, refrain from sharing sensitive information, and be on the lookout for phishing and scams.