Whenever you buy stocks or shares, you use a Demat account, if you are holding stocks and not selling them on the same day it is termed as holding. Earlier stocks were held in physical form, but with the dematerialization, the Stocks were held in dematerialized form. The holding statement gives you details of all of the shares that are being held by you; it is similar to that of a bank statement which gives you the details of assets in your account.
What is the Demat account holding statement?
To buy or sell shares online, you need to open a Demat account online or offline with the Depository Participant. Depository participants are registered with the depository such as NSDL or CDSL. The depository keeps a record of all the Demat transactions. DPs also function as an intermediary between the customer and The stock exchange. Even though buying or selling seems like a simple step with the click of a button, it goes through many underlying steps that go through several days and multiple stages.
- The shares/stocks are transferred first to the DPs pool account, and from there, they are transferred to the Client’s account. The process usually takes about T+2 days, where T is the day the transaction was initiated.
- You should have enough funds in your account, as the funds have to be cleared from your account, which is linked to the Demat account.
- The shares are then finally transferred to your account. There if you keep the shares for more than one day, it is known as holding. On the other hand, if you sell the shares on the same day, it is called Positions.
But how do we know the shares have been transferred to our account? This is where Demat holding statement comes into play. It is proof of ownership of the shares that have been transferred into your account. Though this might seems obvious, there are some instances where the DPs keep the shares in their own pool instead of transferring them to the Client. Thus it is quite advisable to keep monitoring the Demat account holding statement. A Demat account holding statement is a detailed record of all of the shares you hold with their date of purchase, their current market value, and all of the other relevant details. This also gives you a clear picture of all of your shares that are useful at the time of filing your taxes.
Also Read: How to use a Demat Account?
How to download a Demat Account Holding Statement
There are two ways to download your Demat holding statement.
Directly from the Central Depository
There are two major depositories in India – CSDL And NSDL. You can download your CDSL Demat Account statement directly from the website of CDSL or if your depository is NSDL you can download it from the NSDL website. Demat with NSDL will have a 14-digit account number, and the ones registered with CDSL will have 16 digit number. You can simply log on to their website and enter your Demat account number to view your Demat account statement.
Using your Broker’s Trading Platform
When you open a Demat account with your broker, your broker providers you with a trading platform using which you buy or sell stocks. You can easily view your Demat account holding statement using the same trading platform as well. In most cases, you will have to log on to the platform, and then from the dashboard, you can find the reports section, and from there, you can select “Security holdings”. This will open up your Demat holding statement, which you can view or even download. The process remains the same for any trading platform you might use.
Demat account holding statement summarizes all of the shares which you may hold in your account. It has details such as the date of purchase and their current market value. It is important that you monitor it regularly so that you make sure the shares you purchased have been transferred to your account. This is important because there are many intermediaries such as the exchange, the depository, and the DP; your shares can get stuck at any point. The statement thus is conclusive of your ownership of the shares. This gets useful for the purpose of taxes as well. You can easily download your Demat account holding statement from the depository website or directly from your broker.