Stock Trading & Demat Account

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Stock traders are individuals or professionals trading on behalf of a financial company. They invest in the financial market using different techniques and strategies. Over the years Demat account has become an essential device for making investments in stock markets. It facilitates the entire process and makes it secure and speedy. This guide will brief you on your rights as a stock trader or person holding a Demat account, it will also provide you with valuable solutions in case you face any issue with the same.

How to submit a complaint about stock trading & Demat account?

Through National Stock Exchange of India Ltd. (NSE):

You must :

  • Take up a complaint against a trading member with the Exchange.
  • Take up a complaint against a listed company.
  •  File arbitration against a trading member if there is a dispute.  
  • Challenge the arbitration award before a court of law.

Redressal:

  • You may contact the Trading Member (TM) and immediately question him about the transaction that you are not able to understand or if you did not authorize your trading member. 
  • If you are not satisfied with the response, contact the firm’s customer care or branch manager. You can find the details viz contact number and email id displayed at their offices.
  •  In case the said information is not displayed, you may report it to NSE.  
  • In case of any dispute with the trading member, you may complain in writing.
  • It is advisable to retain copies of your letter and every other related correspondence done with the TM.

If the case is still not resolved, the investor can file a complaint with NSE.

  • You can lodge your complaints in the prescribed format along with the supporting documents through either online or offline modes. The NSE Investor Cell will then analyze the response from the TM and forward it to the investor.
  • If the complaints are not resolved within 15 days from the date of lodging the complaints with Exchange or in cases where aggrieved parties are affected by the resolution worked out would be referred to Investor Grievance Resolution Panel (IGRP). 
  • You must then fill the arbitration application within 3 years from the date of the dispute. A panel of 3 arbitrators, if the value of the claim is greater than  Rs.25 lakhs and sole arbitrator if the claim is up to Rs.25 lakhs.
  • You can file an appeal before Appellate Arbitrators of Exchange, if you are not satisfied with the arbitration award, within 30 days from date of receipt of the award.
  • In case you are still not satisfied, you can escalate the matter to Court.

Through Security and Exchange Boards of India (SEBI):

  • You must approach the concerned company/ intermediary against whom you have a grievance. If you are not satisfied with the response. by the listed company or registered intermediary, the investor may file a complaint in SEBI Complaints Redress System (SCORES). 
  • Herein, the limitation period for filing an arbitration reference with stock exchanges is 3 years. 
  • You have the right to talk to the  SEBI officer, dealing with the complaint. 
  1. You may first, go to the ‘Complaint Status’ section of SCORES. 
  2. Enter the registration number and password, you can see the name and contact details of the Dealing officer for your complaint on SCORES. 
  3. Alternatively, you may contact SEBI toll-free helpline service number and let them know registration no. of your complaint whereby they will provide you with the name of the dealing officer of your complaint.
  4. No complaint number and acknowledgement shall be sent to you if the information is with reference to categories of Price/market manipulation and Insider trading.
  • If the Company or entity fails to resolve your issue, then you are free to take legal action (3 years from the time when the cause of action arose) as SEBI cannot act as a judge or an arbitrator and force or entity to resolve your complaint. 
  • The investor can lodge a complaint in both offline as well as online modes. 

You may also escalate the issue via Resolver.

Through Bank:

  • Lodge the complaint in writing (online/offline) at the consumer care department of the concerned branch of your bank. Specify all the essential details and documents to support your complaint.
  • If the Bank is unable to resolve the issue you may contact the Grievance Redressal Officer of the concerned Bank. Thereafter you may approach the Principal Nodal officer.
  • If still not satisfied, escalate the matter to the External Banking Ombudsman, appointed by the RBI.
  • If the issue still persists, you may lodge the complaint with RBI online by accessing the website of the Reserve Bank,  under the link ‘For Common Person’ on the Home page.
  • The Award by the Ombudsman is not binding on the Non-Banking Financial Company (NBFC) or the complainant as they have the right to appeal against the decision of the Ombudsman before the Appellate Authority. In case the NBFC doesn't comply with the directions, you can approach the RBI directly.
  • Further, you may also take a long route by taking the bank to the Consumer Court.

How will RBI help me with my issue?

The External Ombudsman appointed by the RBI will make a decision on your case either through conciliation or mediation between the complainant and the bank complained off. If the terms of the settlement, offered by the bank are fully accepted by you, the Banking Ombudsman will pass an order as per the terms of the settlement. Further, the outcome will be binding on you and the financial organisation. Compensation offered by RBI:

  • For Loss suffered: The Ombudsman has the power to direct the Bank to pay as compensation, equal to the amount of loss suffered because of the act or omission by the Bank or amount up to Rs 20 lakh, whichever is lower. 

 

  • For Mental Agony and Harassment: You will be awarded compensation not exceeding Rs.1 lakh.

 

If the issue is still not settled by way of an agreement within a period of one month, the Banking Ombudsman will proceed further to pass an Award. However, a reasonable opportunity is provided to both the bank and the complainant to present their case. But, this award is not binding it is upon the complainant to either accept or reject it. Upon rejecting the award, you may approach the Appellate Authority which is vested with a Deputy Governor of the RBI. It will pass the order as it may deem fit in the best of your interest.

How will Resolver help you?

If you have a bonafide complaint, Resolver will help you to submit your issue for free. Any complaint from Resolver is an official complaint, and thus the concerned authorities are obliged to act upon it. Resolver acts as a link between you and the authority you’re complaining to, making it easier for you to get your complaint to the right place at the right time. Resolver is free. No adverts, no hidden costs. Start by telling us the name of the company you have an issue with, raise a case and leave feedback afterwards.

Do I have to maintain any minimum balance of securities in my Demat account?

There is no prescribed minimum balance that you need to maintain. You can even have a zero balance in your account.

How do I change Bank Details in my Demat Account?

You can change or update your Bank details by submitting the modification form signed by all the Demat account holders. You may also be required to deposit a cancelled cheque copy to the Demat concern branch.

I closed my account but did not receive any confirmation of closure, what to do?

If you do not receive a confirmation to close the account from the bank in 7-10 working days even after submitting all the required documents, use Resolver to raise an issue with the lender/ bank. Any complaint sent via Resolver is an official complaint, and the lender company/bank is therefore obliged to act upon it.

What can do if my Adhaar Number is not updated?

You may first contact the customer care number of the bank with which you have opened the Demat Account. If they do not respond the drop an email to them on their official website. Further, you may also pay a visit to the bank and let them know the issue you are facing. Mostly the Banks try to resolve the issue within a reasonable time. But if they don.t then you may escalate the matter to a superior authority. You can also escalate the complaint via Resolver.

Helping you with Stock Trading & Demat Account services

Resolver promises

We will never share your personal data with anyone without your permission - your case will go to the firm you’re complaining about and, if appropriate, to an ombudsman.

If you find something wrong with a company or our processes, tell us and we will put it right.

You can raise a complaint against Resolver via Resolver itself.

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