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After you have deposited a cheque in your bank account, you check the bank’s account statement to be sure that the funds have been credited into your account. Likewise, as an investor, it is important to keep track of your holdings. The goal of doing so would be to learn if the purchased securities have been credited into your demat account. Keep reading to find out why it's important to check your demat account status regularly.
Key Takeaways
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Check your demat account to ensure that shares purchased by you have been transferred to your account.
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By checking the account balance of your demat account, you get an idea of the type and quantity of assets you own.
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You can check your demat account balance through the broker’s website or app, the portal of the respective depository or CAS.
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Review transaction history and report any unauthorised or unusual activity immediately.
Demat Account Balance
This is the electronic record of all securities you hold, such as bonds, mutual funds and shares. Unlike a bank account holding cash, a demat account holds all your investments in electronic or dematerialised form. So, your demant account balance will reflect the type and quantity of assets, and not a cash amount. Each time you buy or sell shares, your demat account gets updated to reflect the latest number of holdings you have.
The balance includes the following:
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Securities you hold, listing specific bonds, shares, etc.
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Number of units you own for each security
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Shows if your securities are pledged or free for trading
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Portfolio details focusing on dividends, net asset value of mutual funds, etc.
Different Ways to Check Your Demat Account Balance
You can check the demat account status and balance using your broker’s mobile app or website, through the official website of depositories, or via a consolidated account statement.
1.Through the broker’s mobile app or website
This is one of the easiest options as most brokers offer a user-friendly platform or mobile application for their clients. All you have to do is access the website or app using the client ID and password, and navigate to the portfolio or holdings section. Then, check the details of all securities that you own along with their market value. You can also get the transaction history and the account balance.
2.Through National Securities Depository Limited (NSDL) or the Central Depository Services Limited (CDSL)
Since your demat account is held with one of these 2 depositories, you can check your account balance by logging into their websites. Once you know which depository holds your account, you can access its portal. Remember, all NSDL accounts have DP IDs starting from ‘IN,’ while CDSL accounts have a 16-digit beneficiary owner ID. Register on the portal and log in to view your account balance.
3.Through Consolidated Account Statements (CAS)
The CAS is a unified statement that provides details of all your investments across multiple demat accounts linked to your PAN. In most cases, depositories send the CAS to your registered mail ID on a monthly basis, if there are any transactions, or every 6 months if there are no transactions. Another option is to download CAS online directly from the CDSL and NSDL websites after logging into the respective portals with your demat account and PAN details.
Demat Account Balance Through SMS or E-Mail Alerts
You can also check you demat account balance by receiving updates and alerts through SMS or e-mail. Brokers and depositories offer transaction and other account updates regularly, provided you have registered for the service. Ensure that you give the accurate mobile number and email ID to enjoy these services. Once you enable the notification of receiving demat account updates through e-mail or SMS, you will start receiving them.
Things to Check While Viewing Demat Balance
While checking your demat balance, keep the following points in mind:
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Verify that your personal details are accurate.
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Make sure you have access to the client ID, DP ID and other necessary details.
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Keep track of your existing and past holdings to ensure their accuracy.
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Review the transaction history meticulously and look for any unauthorised activity.
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Examine the charges and deductions applicable to your demat account.
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Cross-check your demat account statement with the trading ledger and your personal investment records to ensure complete accuracy.
Common Issues While Checking Demat Account Balance
Apart from knowing how to check demat account balance, you also need to know some common problems you may encounter while doing that.
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Providing incorrect login credentials, such as wrong client or DP ID.
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Facing net connectivity issues while trying to log in.
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Not keeping track of corporate actions, such as bonus issues or stock splits, can cause confusion.
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Balance of your demat account is not getting updated due to settlement cycle delays.
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Confusion caused due to pending transactions or margin trading.
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Being unaware of demat account charges or other fees levied by the broker which can affect your account balance.
Also, know more about Demat Account Charges and Fees here
How Are Shares Kept?
All demat account securities that are traded in India are kept in electronic or dematerialised form in one of two depositories — Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL). These depositories serve as a kind of reservoir of shares. Their goal is simply to store your shares. NSDL and CDSL receive your shares via your brokerage or depository participant (DP), and not directly from investors themselves.
Why You Should Check Your Demat Account Status
Post settlement and payout, it is vital to make sure that your purchase shares have been transferred by your broker into your demat account from the common pool account. Typically it is assumed that the shares would transfer automatically once the payment is carried forward. While in most cases, this is true. However, in certain cases, it is just as likely that the shares which have been purchased have not been transferred into one’s demat account. Instead, they may be kept in the common pool account for longer than necessary by the broker as a margin requirement for other clients.
What are the implications of not having the shares you have recently purchased in your demat account? The first is unnecessary exposure to multiple risks. It's possible that your shares are being utilised by your broker for a delivery obligation they have toward another client, and you may not even know of this.
Hence, the risk posed by this is that your broker may be lending your shares to a third party without your knowledge. Additionally, your broker could be using your shares for their margin requirements with a certain exchange. In this case, you are exposed to the risk of your shares being sold by that same exchange in case of extreme market falls. The worst-case scenario is that in this event, the broker may not be able to furnish any additional margin to that exchange in time.
A final implication of not taking the time to check demat account status is that you will likely not receive any corporate action benefits, such as dividends, from the shares you have bought that have not yet been transferred to your account. Your broker will receive these benefits in your place. Hence, it is crucial to ensure that the shares you purchase are quickly transferred from the common pool account into your own demat account by your brokerage.
Conclusion
Checking your demat account balance regularly helps you understand if the shares purchased by you have been transferred to your account or not. Apart from the demat balance, you get to know the number of holdings you own once you access your demat account details. Remember to enter correct personal details while logging in to check the demat account status. Incorrect details may refrain you from getting the required details.