What is the Consolidated Account Statement (CAS)?

Stock market investments considered to be the domain of experts in India. According to popular perception, one needs to have a deep knowledge of finance and the markets to be successful with equity investments. Additionally, one needs to invest for the long term in the equity markets. Equity markets are known to deliver returns in the long term, but it is not the only way to earn. Stock market investments, when combined with other financial instruments like mutual funds , can be more effective. One can also invest for short to medium term in the equity markets and accumulate wealth.

Short term investors generally modify their holdings according to the market conditions, which leads to periodic transactions. If you have simultaneously invested in mutual funds, the performance of the investment too would need monitoring. Earlier, one had to separately monitor all his/her investments, but with a consolidated account statement, investors can get the details of all the investments at a single place. Let us start with the institutions that provide the data included in the CAS.

Depositories

The securities that you buy through the stock exchanges are held in the demat account , managed by depositories like CDSL and NSDL. When you sell, the securities are directly transferred from your demat account to the demat account of the buyer. The value of the holdings changes after you buy or sell securities. The value also fluctuates depending on the market conditions. The depositories record all the data related to the transactions and the change in the value of the holdings.

In the case of mutual fund investments, the mutual fund registrar and transfer agent keeps the records of the holdings.

Consolidated Account Statement

One of the basics of any investment is to keep track of the performance and the transactions. If you have to monitor all your investments separately, it could lead to additional efforts and increase the chances of miscalculation. To make monitoring investments easier for investors, the Securities and Exchange Board of India, in 2015, instructed depositories to take the responsibility to collate all the investments of an individual based on the PAN. The Consolidated Account Statement is a result of the market regulator’s order. It contains the details of all the transactions and holdings an investor might have across depositories and mutual funds.

If there is a transaction in the demat account or mutual fund folio, the CAS is sent to the investor at the end of the month. The CAS helps in having a consolidated view of the investments. However, if an investor fails to conduct any transaction during a month, the CAS is sent on a half-yearly basis. The CAS will either be sent on your registered email id or a physical copy will be sent on the address provided.

Benefits of CAS

The CAS is a boon for investors. A consolidated statement has various benefits.

Reduces paperwork:
Instead of separate statements for different investments, the CAS summarises the details of various investments into one and reduces paperwork in the process. With reduced paperwork, you do not have to worry about the safety of different investment details. It helps facilitate online trading which is becoming increasingly popular.

Increases safety:
The advent of online trading and digital payment methods has simplified the process of investing. Investor friendly steps like online demat account opening have been made possible due to the use of technology. However, technology-based services have also given rise to sophisticated frauds and forgeries. With monthly updates, the CAS helps investors stay alert. In case of any unauthorised transactions, you can inform the regulator at the earliest.

Keeps investors informed:
Besides helping prevent frauds, CAS also helps in keeping investors informed. A monthly update of all the investments makes it easy for investors to keep track of their investments and make necessary changes.

The Central Depository Service Ltd has provided a facility through which investors can download the CAS directly from the depository’s website.

  • To download, log in to CDSL’ website www.cdslindia.com
  • Click on ‘login to-CAS’ link on the home page.
  • To log in, you will need the PAN, demat account number and the date of birth.
  • After you submit the request, you will receive an OTP on the registered mobile number.
  • Investors can select the month and year of the CAS.

Conclusion

The CAS has made monitoring of investments easy and simplified for investors. A demat and trading account with a reputed depository participant can make investing simpler. IIFL Demat and Trading accounts provide access to quality research and analytics tools to make your investing journey rewarding. With an IIFL Demat and Trading account, you do not have to pay any opening charges.

Open Demat Account at IIFL