Demat Account: How to Resolve Disputes Related to Transactions

A demat account simplifies securities trading by enabling electronic storage and transfer of shares. However, like any financial system, it is not immune to errors or disputes. Issues may arise due to unauthorised transactions, wrong credits or debits, delays in settlements, or discrepancies in holdings. For investors, knowing how to resolve such disputes is crucial for maintaining confidence and control over their investments. This guide outlines the typical transaction-related issues and the steps to resolve them.

Disputes related to demat accounts can occur for a variety of reasons, such as operational errors, communication gaps, or technical glitches. Some of the most common issues include:

• Unauthorised debit of securities
  

• Delay in dematerialisation or rematerialisation requests
  

• Incorrect corporate benefit allocation (dividends, bonuses)
  

• Failure to execute or process delivery instruction slips (DIS)
  

• Discrepancies in the quantity of securities held
  

• Pledging errors or delays in unpledging
  

Identifying the root of the issue is the first step toward resolution.

Your DP (the bank, broker, or institution with whom you have the demat account) is the first point of contact for any dispute:

• Inform the DP in writing or via their complaint portal
  

• Keep your account number, transaction ID, and other details ready
  

• Maintain a copy of all communications for future reference
  

• Request a timeline for resolution

DPs are obligated under SEBI regulations to respond within a stipulated period, usually within 7 working days.

If the DP fails to resolve the issue satisfactorily, escalate the complaint to the respective depository:

• For NSDL accounts, lodge complaints through https://www.nsdl.co.in
  

• For CDSL accounts, use https://www.cdslindia.com
  

• Attach previous correspondence and supporting documents
  

Depositories examine the case and often coordinate directly with the DP to ensure redressal.

The SEBI Complaints Redress System (SCORES) is the regulator’s official platform for lodging investor complaints.

Steps to raise a complaint on SCORES:

1. Visit - https://scores.gov.in
   

2. Register using your PAN and contact details
   

3. Fill in the nature of the complaint with documentary evidence
   

4. Submit and await response (timeline: approx. 30 days)

SEBI monitors the resolution process and can direct DPs or depositories to act if needed.

If your issue is still not resolved to your satisfaction, you may opt for arbitration as a final step:

• Arbitration is governed under SEBI and exchange by-laws
  

• You can approach the Investor Grievance Redressal Committee (IGRC)
  

• Both NSDL and CDSL have arbitration frameworks in place
  

• Final awards are binding, though can be challenged in court
  

Ensure that all documentary proofs are available, including earlier complaint references.

Preventive measures go a long way in minimising errors and safeguarding investments:

• Regularly review your demat statements and alerts
  

• Use e-DIS (electronic delivery instructions) instead of manual slips to avoid errors
  

• Keep your contact details and KYC information updated
  

• Avoid sharing your DP login credentials with anyone
  

• Act immediately upon spotting discrepancies

Most disputes are resolved swiftly when addressed proactively and with the right documentation.

While demat accounts have made investing more accessible and secure, transaction-related disputes can still occur. Timely identification, proper documentation, and following the correct escalation path—starting with the DP and moving up to SEBI or arbitration—can help resolve most issues effectively. Investors who stay vigilant and informed can navigate these challenges confidently and protect their investments.

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.