What is a Demat Account Holding Statement?

If you have ever wanted to check the funds in your bank account, you have most likely requested your bank to send you an account statement. The bank account statement includes several details and helps you know the amount of money you have. Similarly, if one wishes to check the holdings in their demat account, they can refer to the demat account holding statement. In this blog, we will understand what the demat account holding statement is and how you can check it.

What is a Demat Account Holding Statement?

To invest in shares, you need to open a demat account with a depository participant (DP). A demat account is similar to your bank account, but for your investments. When you purchase shares, they are credited to your demat account.

As an investor, it is important to keep track of the holdings in your demat account. Here’s where the demat account holding statement comes into play. The demat account holding statement is a statement that provides key details of all the holdings in your demat account. The statement includes details such as the name of the security, the cost of acquisition, quantity, and the current market value of the investments. The demat account holding statement also helps investors monitor their investments and track transactions that have taken place within a particular period.

Understanding a Demat Account Holding Statement

It is vital for an investor to understand the demat account holding statement and how it works.

When you purchase shares, they are first transferred to the depository participant before being credited to your demat account. The time taken for this process to complete is known as the settlement cycle. For the transaction to complete, one needs to have sufficient funds in their trading account or bank account linked to the demat account.

Once the transaction is complete, the shares are credited to your demat account. If they are held for more than a day, the shares are classified as holdings in your demat account.

In some cases, the shares are not credited to your demat account and are kept with the DP. As a result, it is important to regularly check and monitor your demat account holding statement, which can provide proof of ownership of the shares you have purchased.

Components of Demat Account Holding Statement

To get further clarity about the demat account holding statement, let’s understand the key components present in the statement.

• Account Information: Account holder’s name, account number, DP ID, and other DP details.
• Date of Statement: The date on which the demat account holding statement is generated.
• Security Details: International Securities Identification Number (ISIN), security name, type of security.
• Holding Information: Acquisition date, cost of acquisition, quantity held, current market value.
• Status of Holdings: Information about the holdings status, such as frozen, pledged, or active.
• Corporate Actions: splits, bonus issues, dividends, or rights issues.

In addition, the demat account holding statement also includes other valuable information like the transaction summary, details of the nominees, and information on the pledged securities.

Importance of a Demat Account Holding Statement

There are several key reasons why a demat account holding statement is important.

Keeping Track

The demat account holding statement can help investors stay informed about the holdings in their demat account. Further, it can help keep track of how your investments have been performing, along with other aspects like corporate actions.

Spot Discrepancies

The demat account holding statement is an important tool in spotting discrepancies. Investors can study their statement to spot any discrepancies or unauthorised transactions that may have taken place. It can also help one confirm that bought shares have been credited to the demat account.

Tax Planning

Investors can benefit from the demat account holding statement while planning for taxes, as it provides key information about the holdings, such as the acquisition date, cost, and market value.

Making Investment Decisions

The demat account holding statement can be helpful while making investment decisions, as it can help one understand whether their portfolio is concentrated and needs to be diversified. It can also help spot outperformers and underperformers.

How to Get Your Demat Account Holding Statement?

Here is how to check the demat account holding statement - 

From the Central Depository Website

CSDL and NSDL are the two central depositories in India. Your demat account is linked to either one of these depositories, and you can access the demat account holding statement by logging in to the respective depository’s website.

You will require your DP ID, client ID, and other basic information to log in. The central depositories also have online portals that offer numerous services, which include checking your demat account holding statement.

One can register for CDSL’s Easi and Easiest online portals and NSDL’s IDeAS online portal, depending on which depository your demat account is linked with.

From the Broker’s Trading Platform

Alternatively, you can also access your demat account statement from your broker’s trading platform. When you sign up for a demat account with a broker, you typically get access to their online trading platform.

One can log in to the trading platform’s website or app to view their demat account holding statement. Depository participants also provide clients with their demat account holding statements at regular intervals, like monthly or quarterly.

Demat Holding Statement vs. Transaction Statement

Although the demat holding statement and transaction statement seem similar, there is a key difference between the two. The demat account holding statement provides a summary of all the securities held within your demat account, along with information about the security type, quantity, market value, and cost of acquisition.

On the other hand, a transaction statement contains all the transactions that have taken place within a demat account. Any sale or purchase of securities, transfers, or pledges are recorded in the transaction statement.

Conclusion

One must keep track of several aspects in their investment journey, which can help them be a responsible investor. The demat account holding statement can prove to be a valuable tool in tracking and monitoring your investments. Moreover, it can help in making future investment decisions and in tax planning.