Securities bought are held in dematerialised form. That is, it is held electronically in the name of the person who has bought it from his demat account. Gone are the days when shares and securities were held in the physical form. Holding shares or securities in physical form was cumbersome and unsafe and subject to the risk of theft, mutilation etc., Keeping records of the same was also difficult. In India it is compulsory to have a demat account if you are trading in shares for delivery.
All clearing and settlement are done electronically and hence having a demat is a prerequisite. Securities held in demat are safe and easily accessible and easy to record and reconcile. One just needs to access his demat account through a login password to access the same.
Since buying and selling of shares have become digitised it is not possible to see the share certificates physically. Therefore, it has to be verified that the shares have come into your demat account. Buying and selling happen immediately however the movement of shares into and out of the demat account takes a little while. Our exchanges settle the trades in T+2 days. Therefore, one has to check the demat statement regularly to verify that the share bought is received in the demat and shares sold are gone out.
The ownership of the shares is complete once they come into your account and thereafter you become the shareholder of the company. Any benefits that accrue to you from the company like bonus shares will now get credited into this account and any dividend will get credited into the bank account that has been provided in the KYC while opening the demat account.
Any benefits declared by the company like bonus shares allotted do not come through the exchange, it is directly transferred to your account. Therefore, one needs to check the statement and verify the same. Any IPO allotment is also directly done to your demat and needs to be checked that it is in order. If demat statements need to be checked regularly to promptly identify errors or frauds resulting in loss of benefits otherwise accruing to you.
Any transfer from one demat to another can be done either manually by filling a delivery instruction slip or through an online transfer.
A demat account provides two types of statements-
A statement of account gives a detailed description of the transactions that have happened in the demat account. This statement is akin to a bank statement wherein the account is credited when stock is received and it is credited if the stocks that have been delivered.
The statement of holdings gives the list of assets along with their quantities held on a particular day.
The demat statement can be downloaded either directly from the depository website or through the trading platform or interface provided by your broker
CAS provides is a combined statement of accounts of transactions done through the National Securities Depository Limited (NSDL) and the Central Depository Services Limited (CDSL) across all categories of investments held in demat forms like shares, bonds, mutual fund etc., CAS is either sent by the CDSL or NSDL depending which one is marked as a primary account.
CAS statements will be sent monthly if there are transactions every month else it will be sent only every six months either through email or post.
Even though the chances of mistakes are minimal in electronic transactions, nevertheless it cannot be completely ruled out. We have seen in the past where mistakes have been committed and frauds have been perpetrated. Verifying and monitoring the demat statement of accounts and statement of holding is a necessary ritual. It is a must as it helps in identifying errors or frauds at the earliest and corrective actions can be taken. The securities in your demat convey that you are the legal owner and therefore one needs to be prompt in checking that shares have been transferred to your account.
Demat statements are a record of all the share transactions executed by you through a demat account and the current holdings on a particular date.
Demat statements are of two types- Statement of accounts and statement of holdings. A statement of account is like a bank account that has entries of debit and credit. Statement of holdings provides the list of stocks or securities held along with their quantities as on a particular date.
The statements can be downloaded by directly accessing the depository website after providing valid credentials or they can be accessed through the trader platform or interface provided by the broker.
A CAS is a Consolidated statement of accounts and holding statements provided by either CDSL or NSDL. It is either provided by email or by post.
Please note that by submitting the above mentioned details, you are authorizing TradeSmart to call and email you and also to send promotional communication even though the contact number may be registered under DND.
Please note that by submitting the above mentioned details, you are authorizing TradeSmart to call and email you and also to send promotional communication even though the contact number may be registered under DND.
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Please note that by submitting the above mentioned details, you are authorizing TradeSmart to call and email you and also to send promotional communication even though the contact number may be registered under DND.