Share trading is an extremely elaborate process with much information. As a trader or an investor, it is crucial to know your demat account holding. Having complete information about all portfolios can assist you in tracking their performance and balancing it as well, depending on how the market is performing. A seasoned trader will always study the market, changing and adapting his strategies with time. A demat account holding statement is the best way to get complete knowledge about the holdings of your demat account.
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Understanding Demat account
A Demat account is a special account used to store various securities. It is a trader's best friend, as when shares are bought, they are deposited into a demat account, and when they are sold, they are debited from the demat account. In India, two organizations provide the demat account. They are
Central Depository Services Limited (CDSL)
National Securities Depository Limited (NSDL)
The Securities and Exchange Board of India (SEBI) mandates that one must hold a demat account for delivery trading even if they are carrying out intraday trading. The demat account has been revolutionary since the time it was implemented. It has saved traders humongous amounts of money and given them a secure way of storing various securities. The demat account has also been responsible for reducing the settlement period all the way down from 14 days to 2 working days.
What does my Demat Holding Statement Mean?
The demat holding statement consists of a detailed record of all securities in the demat account. This statement can be downloaded as a Consolidated Account Statement (CAS). There is a lot of information available in it like the following:
Statement of Accounts
This segment contains all the information regarding the transactions done in your trading account. Simply put, it provides a detailed view of all the securities bought and sold for the specified time frame. All purchases can be seen as credits while all securities sold are visible in the statement as debits. Along with this basic information details like the number of shares bought or sold, the dates and time of purchase or sale as well as the price at the time are mentioned.
Statement of Holding
Your CAS consists of a segment for all the shares currently present in the demat account. A large amount of information can be gained from this segment. The following information is available:
The current balance indicates the total balance of the demat account at the issuing of the CAS. The current balance comprises free balance, locked-in balance and pledge balance. Each one portrays a different part.
Free balance is the amount available in the demat account for trading. For any purchase of shares, the free balance will be deducted.
The Lock-in balance isn’t available for trading as it is the balance of the securities and shares that are locked and can’t be sold. These securities will be sold once the lock on these securities is removed.
Pledge is a service where shares are kept as collateral and loans are taken against them. It signifies the balance of the shares that are pledged and can only be used once the loan is cleared or repaid.
Ways to View/Download Demat Holding Statement
There are two ways for you to check or download the the demat holding statement, they are:
If you have a 2-1 account that is trading and a demat account with a specific broker, you can easily check your demat holding statement. By logging into the broker portal you can check all details regarding your demat account. You will get complete information about all the transactions that have been carried out so far, giving you a clear view of your demat account holdings.
If you have a demat account with a bank or NBFC, you can log into your demat account to download the statement. To download your CAS, you have to go ahead and log in through the portal of the depositories. Based on which depository you have your demat account in i.e. CDSL or NSDL, you’d have to create an account on their portal and log into it. Once you’re logged into the portal, you can go ahead and check the demat account statement or the Consolidated Account Statement and download it.
Importance of monitoring statement of Demat holdings
There are multiple benefits to monitoring the statements of your demat holding. It can help you drastically. Here is why it is important.
To confirm transactions by ensuring that you receive delivery for shares purchased and funds for shares sold.
To prevent the broker from using malpractices to generate profit for himself.
To confirm that no traders are being carried out without your consent.
If case shares aren’t delivered, you could miss out on corporate action like dividends, shares splits, etc.
Knowing how to download the demat holding statement can help you be aware of your complete portfolio in many ways. Your CAS especially contains detailed information regarding the demat account, helping you know about the handling in your demat account and the status of each one. Ensure to monitor your demat holding statement regularly.