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Share trading is an extremely elaborate process with a lot of 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 their strategies with time. A Demat account holding statement is the best way to get complete knowledge about the holdings of your Demat account.
Table of Contents
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 organisations 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 safe way of storing various securities. The Demat account has also been responsible for reducing the settlement period from 14 days, all the way down to 2 working days.
What Does 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, and the price at the time are mentioned.
Statement of Holdings
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 statement of holdings shows the following information:
Current Balance
- 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
- Free balance is the amount available in the Demat account for trading. For any purchase of shares, the free balance will be deducted.
Lock-in Balance
- 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 Balance
- 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 Demat holding statement. They are:
Stockbroker
If you have a 2-in-1 account, that is, trading and a Demat account with a specific broker, you can easily check your Demat holding statement. You can simply log into the broker portal and 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.
Demat account
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 depositories portal. 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 the Statement of Demat Holdings
There are multiple benefits to monitoring the statements of your Demat holdings. It can help you drastically. Here is why it is important:
- To confirm transactions by making sure 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 trades are being carried out without your consent.
- In case shares aren’t delivered, you could miss out on corporate actions like dividends, share splits, etc.
- You may identify any mistakes or discrepancies in your transactions, including mistaken quantities, pricing, or unauthorised trades, by regularly checking your Demat holding statement.
- You can secure your investments by keeping a close eye on your holdings and blocking any fraudulent or unauthorised trading by your broker.
- It gives you confidence in your financial transactions by ensuring that your broker follows all legal and regulatory regulations.
- Keeping track of your Demat account holding statement is crucial for tax management, especially when it comes to capital gains and losses, as it enables you to report your investment income.
- You need to understand how to download Demat holding statements, as they allow you to keep a close watch on your investment portfolio and financial transactions.
Conclusion
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 how your Demat account is being handled and the status of each share and/or security. Make sure that you monitor your Demat holding statement regularly.