Saturday, 30 June 2012

Freeze Your Demat Account When Not Using It

A depository account holder (beneficiary account) may freeze securities lying in the account for as long the holder wants to. By freezing, the account holder can prevent unexpected debits or credits, or both, creeping into the account.

i. Freeze for debits only:
A demat account holder may freeze the account only for debits by submitting a freeze instruction to its Depository Participant (DP). On execution of the freeze instruction by the DP, the status of the account will change to `Suspended for Debit'.

ii. Freeze for debits/credits:
An account holder may freeze the account for debits as well as credits. If such instruction is issued, the status of the account will change to `Suspended for All' after the execution of the instruction.

iii. Freeze a particular ISIN:
ISIN stands for International Security Identification Number. An account holder may freeze a particular ISIN (security of a specific company) from being debited from the account, without freezing the whole account.

iv. Freezing a specific number of securities:
An account holder may freeze a specific quantity of a specific security in an account. Thus, this facility will enable the account holder to earmark some quantity of securities as "not for trade" within a specific security, without disturbing the movement of other securities in the account.

3 comments:

  1. Mansukh is leading share broking company in India and provides best investment tips and online stock tips for investors. Open demat account with Mansukh Investment and Trading Solutions Provider.Mansukh provides full investment tips for new investors.

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  2. I am totally agree with you and its important also to freeze your demat account when you are not using it.You really give all the important information about the deamt account it will be helpful for me.thank you so much.

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