Checking on our wealth is a human tendency. It gives us a sense of security, gives us an idea of where we stand financially, and also gives us the comfort that our nest is intact. It is easy to check and take stock of our physical and tangible assets, though it may be time consuming. However, it is far easier to check in the electronic format.
Take bank accounts, for example, a few taps on the mobile and we can get our bank balance. Similarly, the value of our position with the broker is possible by logging into your account. A summary of all cash and derivative position with a mark-to-market profit and loss account will be visible.
But what about shares that are stored in a Demat account and not linked to your trading account. How does one get access to that? To answer that let’s first understand Demat and how shares are stored.
Since the turn of the century, share transactions in India have largely been in electronic form. The days of physical shares are behind us as share trading moved from an open outcry system to computers, and with it shares certificates gave way to an electronic mode of storage.
This process of converting physical shares to electronic form is called dematerialization of shares.
Now, if an investor buys shares, they get stored in what is known as a Demat account. Just like a bank account where money is stored, a Demat account stores financial assets like shares. Each investor has his personalized Demat account.
All shares purchased are credited to a Demat account which maintains records of all transactions in and out of the account.
These Demat accounts can be opened with a broker, bank, or any Depository Participant. A Depository Participant is registered with one or both the Depositories – National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CDSL).
A Demat account needs to be regularly checked by both a trader as well as an investor to ensure that the trades are going smoothly. If shares are not credited after purchasing them in the market, he or she can take up the matter with the broker. More importantly, in case the account holder wants to sell a share, he needs to ensure that they are available in his Demat account else, he may have to pay for the auction charges that an exchange charges if shares sold are not delivered.
Few scams reported recently around shares from Demat accounts, especially dormant ones, going missing also requires one to regularly check their Demat accounts.
The Demat account needs to be specially checked around the time when corporate actions are announced, like dividends or bonuses. If the shares are not in the Demat account of the client, he may not be able to avail of the benefit of these actions.
Normally, the Depository participant where the Demat account is opened sends regular statements either in the mail or through an SMS. These statements have the detail of present holding in the account. But these accounts are periodic and are not sent on a daily basis.
For someone who wants to check their Demat account, the investor will need to log in on the site of the Depository Participant with his unique ID and password. In case, the details are misplaced, the Depository Participant needs to be contacted to resolve the matter.
One can also check the Depository directly for their Demat details. NSDL has a service called IDeAS which stands for ‘internet-based Demat account statement’. The site has a lag of 30 minutes but offers all details like the account statement and transaction details. One needs to register on IDeAS and provide details of their Demat account before accessing the details.
The advantage of viewing in IDeAS is that you can get a consolidated statement of all your Demat accounts. CDSL offers a similar facility where one can view the consolidated statement.
A trader or an investor’s job is not just researching for stock ideas or looking for trade setups, they also need to keep a track of their belonging. Checking your Demat account for all your purchases and sales is a healthy habit that keeps you updated on your holding and helps keep track of corporate action related transactions like dividends being deposited in your bank account or bonus shares being credited.
Before exchanges move to electronic transactions, a buyer of shares would get share certificates which were filed and saved in safe boxes in the house. However, post automation share trading moved from an open outcry system to computers, and with it, shares certificates gave way to an electronic mode of storage. This process of converting physical shares to electronic form is called dematerialization of shares.
The electronic shares are stored in what is known as a Demat account. Just like a bank account where money is stored, a Demat account stores financial assets like shares. Each investor has his personalized Demat account.
The Demat accounts can be opened with a broker, bank, or any Depository Participant. A Depository Participant is registered with one or both the Depositories – National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CDSL).
A depository is an organization, bank, or institution that holds securities and assists in the trading of securities. In India, there are two Depositories – National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CDSL). NSDL is associated with NSE, while CDSL is with BSE. However, shares bought in one exchange can be stored in the Depository promoted by the other.
A Demat account needs to be regularly checked to ensure that the trades are going smoothly. If shares are not credited after purchasing them in the market, the trader can take up the matter with the broker. More importantly, in case the account holder wants to sell a share, he needs to ensure that they are available in his Demat account, else he may have to pay for the auction charges that an exchange charges if shares sold are not delivered.
Checking your Demat account for all your purchases and sales is a healthy habit that keeps you updated on your holding and helps keep track of corporate action related transactions like dividends being deposited in your bank account or bonus shares being credited.
In most cases, the Depository participant sends regular statements either in the mail or through an SMS.
If someone wants to check their Demat account, the investor will need to log in on the site of the Depository Participant with his unique ID and password.
One can also check the Depository directly for their Demat details. NSDL has a service called IDeAS which stands for ‘internet-based Demat account statement’. One needs to register on IDeAS and provide details of their Demat account before accessing the details.
The advantage of viewing in IDeAS is that you can get a consolidated statement of all your Demat accounts.
CDSL offers a similar facility where one can view the consolidated statement.
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.