Your Demat and SOA accounts are important for managing your investments. They not only store your financial details but also carry your trust. But just like other online platforms, these accounts can be at risk. That’s why knowing how to keep them safe and secure is important. Let’s understand how to do that simply.
Understanding the Meaning of SOA and Demat Accounts
These two types of accounts allow investors to maintain their investment portfolios.
What is SOA?
SoA is the short form for Statement of Account. It is a transactional document that summarises your mutual funds holdings. It allows you to stay aware and in control of your investments.
What is Demat?
Demat stands for a dematerialised account. It is a digital account where the need for paper-based securities is eliminated. Your stocks, shares, bonds, and ETFs are all collected and stored in one place, electronically.
Why Should You Protect Your Demat and SOA?
| Parameter | Reasons to protect |
| Unauthorised Transactions | If you do not monitor and secure the demat account, it is open to fraud. With unauthorised access, anyone can sell, transfer or buy securities in your name. |
| Accuracy | With digitisation, real-time records are easily available. If you regularly check your demat and SOA, you can keep the information accurate and secure. |
| Penalties | Discrepancies in statements can often lead to penalties. In fact, not complying with certain procedures, such as KYC, can also lead to penalties. So, when you maintain and secure your Demat and SOA Accounts, you reduce the risk of penalties. |
| Compliance | SEBI and other bodies are at the top of their game and occasionally introduce guidelines. These guidelines are meant to help you protect your investments. So, by staying updated, you can comply with the laws and easily maintain and secure your Demat and SOA. |
How to Maintain Your SOA and Demat Account?
You can maintain and secure your Demat and SOA account in 4 easy steps. Let’s get to that.
Step 1: Regular Monitoring
The first step to security is being aware. And to be aware, you will have to keep track of your accounts. You can stay at the top of your game by regularly monitoring your account at least once a month. Moreover, you must also opt in for alerts to get instant updates on account activity.
Step 2: Strict Security Measures
Don’t let your passwords for Demat and SOA be generic. Make it complex and unique only for that purpose. Then, do not share your credentials, even with your friends or advisors. Lastly, you can add two-factor authentication as a best practice for demat account safety.
Step 3: KYC Details
Know Your Customer (KYC) may seem boring when it happens, but these details are linked to your investment portfolio. Any mismatch in the information can also lead to rejection of transactions. So, don’t be lazy and update your basic details in your official documents as soon as there is a change.
Step 4: Use Power of Attorney, Wisely
Registering a nominee will simplify your claims process in emergencies. Besides, if you cannot be present to manage your account actively, you can also try giving a Power of Attorney (PoA) to someone you can easily trust. But, be wise. Do not make it a limitless power to access your account. Keep certain powers exclusive to yourself.
What To Do When Your Account Is Hacked?
Even after following all these best practices to maintain and secure your SOA and Demat, your account may get hacked. SEBI created the best complaint redressal platform to protect investor interests in those cases.
So, if you feel your account is hacked at any moment, you can follow these steps:
- Inform your broker or your DP;
- Block all further transactions using the portal;
- File a complaint on the SCORES platform; and
- In case of identity theft or financial fraud, file an FIR with the police.
Key Tip: If your Demat Account is frozen, you can unfreeze it. Check out the steps to unfreeze your Demat Account here.
Protecting Demat and SOA Accounts: Best Practices
To conclude, as an investor, it’s your primary duty to maintain and secure your SOA and Demat Accounts. This helps you avoid fraud and unexpected losses. So, follow these safe trading practices to keep your account safe.
- Do not click on any suspicious emails, links, etc.;
- Do not use any public Wi-Fi while accessing your investment details;
- Keep your PAN and Bank details updated and linked;
- Check your Consolidated Accounts Statement at regular intervals; and
- Check and update your nominee details each year.
Take Charge of Your Financial Security Today
With these best practices, it is clear that maintaining and securing investment accounts is not a one-time task but an ongoing one. But remember that you are securing your savings, goals, and dreams. So if you have not started maintaining your Demat and SOA yet, start today!
