Are you new to the stock market? Then there might be a chance of getting calls offering services for account handling, right? Before you avail that service, you need to understand what account handling in stock market is.
Let’s break it down.
What is Account Handling in Share Market?
Let’s make it simpler for you to understand.
All of you must have a bank account. Now, a question for you, do you manage your debits & credits yourself, or have you given it to someone else to operate?
Ofcourse, you would be handling it yourself, as it contains your income details and life savings.
Now let’s talk about your demat account, containing your funds to trade and shares in which you have invested.
These are also your assets, right?
Account handling is something where any third party, generally an individual or a group, asks you to manage your demat account on your behalf and charge fees or profit sharing.
Seems scary, but unfortunately, many beginner traders fall for it in the hope of getting better returns as claimed by those individuals and companies.
These days, with the increasing interest of people towards stock market trading, but a lack of knowledge has increased such practices, and they are mostly unregulated.
Account Handling Services Telegram
With the rise of smartphones and social media apps, it has become easier than ever for anyone to reach out globally, whether to promote ethical services or unethical ones.
The same applies to account handling in the stock market.
Many individuals and companies now target traders through social media platforms. Sometimes, you’re randomly added to a WhatsApp or Telegram group where someone offers a “sure-shot” profit plan.
It grabs your attention. And then, step by step:
- You’re asked to share your broker credentials—username/password or POA (Power of Attorney) access.
- They promise to trade on your behalf using their so-called expert strategy.
- You either pay a fixed fee or agree to trading account handling with profit sharing, for example, handing over 30% of the profits to that individual or group.
- Some even provide “demo trades” that show high returns initially to build trust, only to switch to high-risk trades later, wiping out your capital.
In the end, whether out of excitement or the greed for quick gains, many end up handing over full control of their account and funds to a stranger, often someone they’ve never met, and who lured them with fake promises of profits.
Is Demat Account Handling Legal in India?
No doubt, it’s already clear that account handling is risky. But some might argue, “Riding a bike without a helmet is risky too, yet many still do it.“
That’s true.
But just like riding a bike without a helmet is a violation of traffic rules, handing over your demat account to someone is also subject to strict regulatory rules.
It’s important to understand that account handling is legal in India only under specific conditions.
You can legally hand over your trading or demat account only to a SEBI-registered Portfolio Management Service (PMS) provider. Even then, PMS providers are only allowed to handle accounts with a minimum investment of ₹50 lakh.
So, if someone, whether registered or unregistered, reaches out to you offering account handling services, it’s a major red flag. Such arrangements are not just illegal, but also completely unregulated.
If you lose money in such setups, you’re left with a complex and lengthy recovery process, with no guaranteed outcome.
And remember, in these so-called account handling services, you are the one who ends up bearing all the losses, while the handler walks away untouched.
How to Report Account Handling Services in India?
Although SEBI releases many circulars to alert beginner traders to be aware of the consequences and risks involved in account handling.
However, if you have been unfortunate and lost money, then act quickly.
Register with us and get guidance on filing a complaint and on proper documentation. Further, we also assist in representing your case in counselling or arbitration.
SEBI Registered Account Handling
As per SEBI regulations:
- Only SEBI-registered Portfolio Managers (PMS) can legally manage your trading account.
- Registered Research Analysts (RA) and Investment Advisors (IA) can only recommend, not trade on your behalf.
- Account handling by anyone else is illegal and can result in account suspension, fund loss, or SEBI action.
Conclusion
If someone asks for your trading account access, it’s a red flag.
Never share your credentials with anyone. True wealth in trading comes from education, discipline, and control, not shortcuts.
