Have you ever come across those flashy ads on Instagram or Telegram promising to “manage your demat account” and double your profits in a week? It sounds like a dream, especially when the stock market feels like a giant, confusing puzzle.
But before you hand over your login details, you need to ask: Is account handling legal? The short answer is: it’s complicated.
While professional wealth management is a cornerstone of the financial world, the “account handling” services you often see being pitched to retail investors usually walk a very thin legal line and often cross it.
Account Handling in the Stock Market
If you’re new to the world of finance, you might be wondering, “What is an account handling?”
In the broadest sense, an account handler is someone who manages a financial or business account on behalf of a client.
And when we talk about money and investments, an account handler is someone who takes charge of your trading activities.
They make the decisions, they time the market, and they execute the trades. Think of them as a “pilot” for your investment “plane.”
So, how does this actually work in the real world?
Account handling in the share market essentially involves an investor giving their trading account credentials (username and password) or a “Power of Attorney” (POA) to a stockbroker.
However, giving credentials to a third party without any legal agreement or POA, just with the hope of earning a huge profit or getting lured with the promise like “You provide the money; I provide the expertise and guaranteed profit. We split the profits.”
Although such a statement sounds fair, but not legal.
This is why many investors ask, can a Research Analyst handle an account in India?
The simple answer is no, Research Analysts can only provide advice, recommendations, or reports. They are strictly prohibited from managing or trading in your account.
Is Account Handling Legal in India?
Let’s get into the meat of the matter. Is account handling legal in India?
According to SEBI (Securities and Exchange Board of India) guidelines as of 2025, the answer is a loud “No” for most people.
SEBI is very strict about who can manage other people’s money. If someone is trading in your account by taking your login ID and password, they are violating the “User Agreement” of the exchange.
In the eyes of the law, only the account holder should operate the account.
However, there is a legal way to do this: Portfolio Management Services (PMS). But here’s the catch: to use a legal, SEBI-registered PMS. You typically need a minimum investment of ₹50 lakhs. If someone is offering “account handling” for your ₹50,000 account, they are almost certainly operating illegally.
Now, just imagine if a handler loses all your money (which happens more often than you’d think); it leads to financial and emotional distress.
Further, filing a complaint and getting a result in your favor is not guaranteed.
You’re essentially “off the grid.”
In short, a legit company or an individual, whether working for a stockbroker, an advisor, or another authorised person, will never ask for your password.
How to Report Illegal Account Handling?
If your account has been compromised or you suspect someone has gained unauthorized access, take the following steps immediately:
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- Change your password immediately: If you still have access, change your password right away. Also, update your recovery email, phone number, and security questions.
- Reach out to a Stock Broker or Advisory: If somehow, you have shared your credentials with the team of stock brokers or advisors, then raise a complaint to their compliance officer by sending an email.
- File a complaint in SEBI: If the concerned person is SEBI registered, register on SEBI SCORES Complaint Portal, mentioning the illegal account handling practice along with proof.
In the case of an unregistered entity, send an email to SEBI with all the details and evidence.
Need Help?
In case you are stuck and confused about the process to file a complaint against account handling, then register with us.
Our team will guide you through the process of reporting authorised and unauthorised companies or individuals, as well as the escalation of complaints.
Conclusion
Before you even consider saying yes to account handling, pause and ask yourself one simple question: Is this really safe? The honest answer is a loud and clear no.
First, let’s talk about your money. Once you hand over your account, you lose control completely. You don’t decide when trades are placed, how much risk is taken, or when positions are exited. Your capital is at the mercy of someone whose decisions you can’t question in real time.
Then comes an even bigger risk: your personal data. By allowing account handling, you’re essentially giving a stranger access to highly sensitive information like your PAN, Aadhaar, and bank-linked trading details. In today’s world of data leaks and financial fraud, that’s not just risky, it’s reckless.
When you look at the bigger picture, the so-called “easy profits” promised by account handlers come at the cost of your money, your identity, and your peace of mind. And that’s a price no investor should ever pay.
