Demat and trading accounts: how your holdings actually sit

Two accounts do different jobs. The trading account is the interface to the exchange — orders in, trades out. The demat account is where delivered shares are held electronically by a depository, independent of the broker's own application.

That independence matters. The consolidated statement sent by the depository is the authoritative record of what you own. Reviewing it periodically, rather than trusting only the broker's dashboard, is basic hygiene.

Keep nomination details current and verify that your registered email and mobile number are yours and active. Alerts about pledges or debits from your holdings are the earliest warning of anything wrong.

Finally, understand pledging. Using holdings as collateral for margin is a normal facility, but it creates obligations. Know what is pledged, at what haircut, and what happens if the collateral value falls.