2. You can freeze or lock a demat account

The account holder can freeze his demat account for a desired time period. A frozen account prevents securities to be transferred out of (Debit) and transferred into (Credit) the account.

3. Transfer of shares and debentures

Shares and debentures in your demat account can be transferred to another demat account by issuing appropriate instructions to your depository participant (DP) through delivery instruction slip (DIS). If you sell your securities through the stock exchange, you will instruct your DP to transfer shares from your demat account to the brokers’ pool account. In case of off market transaction, you will instruct your DP to transfer to the concerned buyer’s demat account.

Similarly, securities can be transferred to your demat account by the instruction of the seller (transferor) to his DP. The seller will have to mention your demat account number in the DIS.

The DIS book is similar to a cheque book and it needs to be handled with the same care as a cheque book. Accordingly, you will always store the DIS book in a safe place in your custody and not hand over signed blank DIS to anybody.