A DMAT or a dematerialized account is actually a non physically existing storage for stock certificates. It maintains documents of securities and shares electronically so as to ease access, transactions and in turn improves investor’s mental peace the by saving time. Now a days there is a hike in number of IPOs getting birth and emerging in market, which in turn giving birth to a number of new investors. So to have a DMAT account is a mandate now, for hassle free transactions and also for safeguarding purchased-stocks electronically. The unknown fact is if you do not take minimal care towards DMAT account, you can encounter undesired troubles and at times security breach can also be an issue.
Safeguarding the DMAT:
what to do in case of a suspicious activity / fraud:
If you find any suspicious activity or any transactions not in par with the actual in laid rules-document, then we can notify/complaint to the Depository Participants(DP) with the name of the transaction or share.
Regulatory authorities, which is there on top of the DP ( for example SEBI in India), can also take your complaint for an encountered suspicious activity in written form.For registering any complaint with SEBI, go to the URL : http://scores.gov.in and click on the “Complaint registration“( highlighted in yellow)
Then a popup form like below will appear. Fill all the mandatory details to submit the form and register complaint. Also there is a provision in this website for the registered users, to check the status of already raised complaint.
Partial Freeze option on DMAT:
Most of the investors once purchases long term shares or IPOs, usually hold them for longer time. In such cases you have to opt for the freeze option on DMAT.
Partial freeze option to stop any transactions on a specific stock-item, so as to prevent it from any suspicious activities. Partial freeze improves the security percentage and of course hikes mental-peace to the investor.
Depending on the requirement we can provide our freeze period ( start and end of freeze dates) also to the respective DP while availing this option. An account freeze by a bank or brokerage prevents all transactions on the account, by doing so unexpected credits or debits creeping into the account can be prevented
— More about DMAT and transactions in upcoming Business Sessions