Demat: 4 key risks associated with dematerialised account

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emat account acts like a digital wallet for your stocks and investments, which ensures security and convenient management of your securities through your computer or mobile device, eliminating the need for physical paper certificates. Also read: How to open a joint demat account? Here's a step-by-step guide In order to maximise the advantages of demat accounts, new investors need to carefully choose the right depository participant or stockbroker.

The brokerage company functions as the investors' key ally, offering guidance and enabling all their trading and investment endeavors, thereby assuming a pivotal role throughout their financial market journey. As new investors increasingly show interest in the market, there has been a corresponding increase in instances of fraud related to demat accounts.

The stock markets exhibit volatility and a high level of dynamism, reflecting the technologically advanced and interconnected nature of our world. Any significant occurrence, regardless of its location, has the potential to influence the value of the stocks in your portfolio.

Moreover, stock prices experience fluctuations multiple times throughout a single trading session. Volatility reaches its zenith on certain days, particularly during significant events such as the Budget, elections, and the release of key announcements like GDP figures and earnings reports from major corporations.

Also read: How to open a demat account online? Here's a comprehensive step-by-step guide With an expanding pool of investors and service providers, the risk of fraud and mismanagement is increasing. Concerns about the safety of demat accounts have been raised due to instances of malpractices, including unauthorised selling of clients' holdings