Understanding Your Statement Of Demat Holding
Demat is like a bank account that holds your shares and other securities. The statement of demat holdings broadly consists of a statement of demat transactions and demat holdings statement. The statement of demat holdings is your quick guide to your holding of shares and other securities owned by you and in what quantity. The demat holdings statement is automatically updated i.e., shares are credited when you buy and shares are debited when you sell.
How to view your statement of demat holdings?
The demat holdings statement gives you a comprehensive picture of all the shares and other securities that you hold. Remember that demat holdings statement is a statement of ownership, so only the equities and bonds that you own are shown in the demat holdings statement. Before we go into the details of the statement of demat account, let us quickly understand how your demat account is linked to your trading account and your bank account. That forms the core of your demat holding statement.
For example, when you buy shares you have to buy these shares only through your trading account. But to buy shares your trading account must be funded which you will fund from your bank account. Once you place a purchase order for shares, the demat account will be credited with the shares on T+2 trading days. This refers to 2 trading day and excludes trading holidays. These shares will get added to your statement of demat holding.
When you sell shares, the demat account will get debited on T+1. Under the new SEBI regulations, you must give pre-delivery of shares from your demat account to avoid paying margins on sale of shares. Once the pre-delivery is assigned to your broker, the shares are debited to your demat account on the same day or on the next day. The bank account will get credited with proceeds from the sale of such shares on T+2 day and the statement of demat holdings will reflect these reduced shares.
Your statement of demat holdings will reflect the final outcome of various debits and credits to your demat account. For example, when you buy shares or you apply for an IPO, there is a demat credit when the shares get delivered or allotted. When the company you are holding issues bonus or stock split, then also you get a credit of the additional shares to your demat account and it reflects in the statement of demat holding.
Importance of monitoring your demat holdings statement
There are a number of reasons why monitoring statement of demat holding is critical. Firstly, it helps you verity that the stock credits and stock debits actually happen on time so you can immediately follow up with your broker / DP for the same. Secondly, it is never a good idea to leave your demat account unmonitored for a long time.
Anything that is not monitored for a long time is vulnerable to errors and misuse and you should always monitor to ensure that everything is in order in your demat holdings. Lastly, demat holdings statement is a wealth statement and gives you a real time view of your portfolio and your net worth. This is useful information when you need to either leverage your holdings or to give proof of investments to the bank or any other statutory body.
How to read your statement of demat holding
Today, with the advent of technology, it is possible to view your Demat holdings directly with NSDL or CDSL, wherever your demat account may be located. Typically, your Demat account number is an identification code for your depository participant as well as your own individual ownership interest. To view your demat holdings in your NSDL demat account you just need to register once for this service at: https://esevices.nsdl.com
The other depository, CDSL, offers the “Easi” online service wherein you can view your statement online for CDSL accounts by registering yourself at
Your DP can also help you with the statement of holding but it is better to have online access so you can view the details on the web itself. Ensure that there are enough security features you follow while accessing your details of statement of demat holdings on the web.
Frequently Asked Questions Expand All
Demat statement of holdings can be downloaded either from NSDL or from CDSL, depending on where your demat account is located. You can also download a comprehensive account statement or CAS to cover all your holdings across NSDL and CDSL accounts. Also compare the demat holding statement with the demat transaction statement and verify the audit trail.
Yes you can ask for the statement to be sent via post but such transactions would entail postage and other service charges and you can check with your broker / DP about such charges in advance. It is advisable to have access to demat holdings online so that you have a lot more flexibility.
SEBI stipulates only periodic mailing of statements to demat clients depending on whether there were demat transactions or not during the period. Asking for physical statements will entail a cost. In the interest of being cost effective and also having more flexibility to access your demat holding statement at any point of time, it is best to have online access to your demat statement. It helps in understanding your statement of demat better.