A demat account is, in its most basic essence, a bank account/wallet of sorts for securities. If an individual wishes to purchase securities such as shares and bonds, they must have a demat account in their name first, which will allow them to store their securities in a dematerialized or digital manner. Bank accounts allow their holders to view their bank statements, either on a physical passbook or online. A demat account serves a similar function. It shows individuals the transaction history for their demat account and allows them to keep track of transactions and confirm that they have received any shares purchased that they have made payment for. But, how to check demat account balance? Let’s delve in a little further.
Demat account statement
In India, any shares purchased by investors are stored in two types of accounts that play the role of two depositories in electronic form. The first is ‘National Securities Depository Limited (NSDL), and the second is known as ‘Central Depository Service Limited’ or CDSL.
It is worth noting that these depositories do not receive their shares directly from investors. Instead, they go through Depository Participants, who are registered with SEBI (Securities Exchange Board of India) and play the role of agents for any depositories. Furthermore, in order to trade shares, one must possess both a trading account and a demat account held with a DP.
Consolidated Account Statement
This document is the most crucial piece of the process when one is trying to read their demat account statement. A Consolidated Account statement or CAS is a single document that contains all transactionary as well as investment details pertaining to mutual fund investments and depository accounts. Essentially, it is a compilation of all investments and transactions made through these modes. Accessing the CAS will help individuals better read their demat account statement and can be employed whilst trying to figure out how to check demat account balance and statements. Additionally, it also provides detailed documentation of any holdings the investor might have and allows for a summarized view of all investments. Since it is accessed by taking into account the NSDL and CDSL, it also allows investors to view statements across demat accounts regardless of the broker.
How to access demat account statement
The CDSL website now allows all investors an online medium to check their CAS, the procedure for which is as follows :
1. Log onto the CDSL website at cdslindia.com
2. Under the ‘Quick Links’ tab on the homepage, select ‘Login’ and login to – CAS.
3. Proceed to enter your PAN number
4. Proceed to enter your Demat Account Number
5. Enter other requested data such as date of birth and complete captcha requirements.
7. You will receive an OTP on your registered mobile number which you can use to authenticate the login
If all the details entered are correct, you should now be able to view your CAS and check the demat account statement.
Things to look for while reading the demat account statement.
Once an Individual has gained access to their CAS and can view their demat account statement, there are a number of things to look for in order to correctly interpret the statement.
Personal Details : The first and foremost step one should carry out even before looking at any data, is to verify that they have access to the correct account and that all their credentials are in place.
Folio Number: This is another piece of information unique to each investor, and functions as an identity stamp for all future investments made by said investor.
Fund options and names: This shows users the title of their funds along with mentions of dividend payments and growth of the fund.
Dividend payouts: This shows investors a history of the dividend payments they have received from their investments.
The Net Asset Value: Also known as the NAV, this varies daily. Thus, the NAV shown in the statement is from the time of investment.
Transaction Summary: This functions as a giant compilation of all records of any transactions the investor has made in the share market. Along with this, the SIP and SWPs are also mentioned.
Demat accounts allow investors a place to store their investments and keep track of them. Since all investors hold individual identities that can possess multiple demat accounts, the NSDL and CSDL allow individuals to access a master database of sorts of all their demat accounts and all demat account statements. The ‘how’ of how to check demat account balance and statement is rather simple and can be done simply though the CDSL website. In order to correctly interpret the data and stay on top of one’s investments however, investors need to pay keen attention to aspects of their CASs such as the transaction history and the names of their funds and options and ensure that all is in order.