You should have a Demat Account in your name, which permits you to store securities in the dematerialized form if you want to invest in the stock market or buy other financial securities like bonds, mutual funds, debentures, etc.
Your account and the bank account are extremely similar. It enables you to keep securities in an electronic format, including shares, bonds, mutual fund units, etc.
Because your Demat account houses all of your investments, it is critical to maintaining a constant eye on the account’s balance.
Through the portals, you may also access your Demat holding statement and check the status of your Demat account.
For your Demat holding statement, Depository Participants frequently provide several graphs and charts to give you more context.
The process of checking Demat account balance
You’ll likely use a digital platform to open a Demat account with a depository participant.
You will have the ability to examine your Demat account balance, in this case, on the depository participant’s website or mobile application.
Through the portals, you may also access your Demat holding statement and check the status of your Demat account.
For your Demat holding statement, Depository Participants frequently provide several graphs and charts to give you more context.
Fortunately, there are multiple approaches to achieving this. You have three options for checking the balance of your Demat account.
The sections that follow allow more information on these techniques.
Through Demat account statement
Regular statements will be sent to you by the depository where your Demat account is held by physical mail, email, or both.
This document, often referred to as the demat account statement, contains a wealth of crucial details about your demat account, including the current balance in your account.
You can determine your Demat account balance with just one glance at this statement.
Through trading account
When you click on the link for the trading account net balance in your trading app or online account, there will be multiple distinct references to the trading account balance.
You can find out the opening cash margin that is available for use for delivery or intraday by checking the balance of your trading account. You can inject more money or plan your positions for the day accordingly.
The sales revenues made before T+2 are referred to as the “notional cash limit.” This cannot be withdrawn but used to take trades or as margins.
Additionally, it displays the margins that are locked or used for trading but cannot be used. F&O margins and MTM margins are included in this.
The Net Available Margin column, which displays the precise clean cash amount at your disposal, is the most significant.
The trading account enables you to place trade transactions and serves as a link between your bank account and Demat accounts.
For clearing and settlement, trading account flows are essential. Unlike Demat accounts, which incur AMC fees, trading accounts are typically simple to maintain because there are no associated costs.
By logging in to the Demat account
Suppose you have many Demat accounts because you need to sign in to each linked trading account to check your balance.
You can check the balance by logging in directly to your Demat account. The Consolidated Account Statement can be accessed using this method effectively (CAS).
The CAS effectively functions as a single statement that summarises important details about your Demat accounts with a depository.
You can see your Demat account balances much more clearly and save time.
Investors can access the statement of Demat holdings among depository participants by using a consolidated account statement.
Using the statement, investors can access their holdings and investments from all of their Demat accounts in one place. It has a summarised view of all investments in a Demat Account.
Consolidated Account Statements
If people access the CAS, it will help them to carefully read their Demat Account statement and provide detailed documentation of any holdings they may have.
Investors can check statements across Demat Accounts irrespective of the broker because it is accessible by considering NSDL & CDSL.
On the CDSL website, investors can see their Consolidated Account Statements (CAS); the process is described below-
- Check out the CDSL webpage.
- Log in with the proper information.
- Enter your 10-digit PAN number when prompted.
- Your 16-digit Demat account number should now be entered.
- Put your DOB in
- Full Captcha specifications
- Click to generate an OTP that will be delivered to the registered mobile phone on your account.
Why should you check the Demat account balance?
Your Demat account houses all your investments and allows you to store securities electronically, including shares, bonds, mutual fund units, etc.
It is necessary to keep checking the account’s balance. Demat account balance checks for inconsistencies, errors, or unauthorized transfers to or from your account regularly.
In extremely rare circumstances, stock brokers may use the POA you sign to secretly complete unauthorized share transactions.
You consent to the Power of Attorney when you open a trading and Demat account with a stockbroker.
In accordance with this agreement, your stock broker is authorized to access your Demat account and make necessary transfers on your behalf.
Depending on how many securities you buy and sell, your Demat account balance changes regularly.
Therefore, it is crucial that you keep track of your demat account’s balance to ensure that the account is always debited and credited in the proper amounts and in accordance with each transaction.
This is particularly true when buying shares because they only appear on your Demat account after T+2 days.
The Securities and Exchange Board closely monitors the market and its players.
Additionally, by monitoring the balance of your Demat account, you can quickly spot any irregularities or unauthorized movements.
By doing this, you would be in a far better position to alert the appropriate authorities to the situation and demand that it be fixed immediately.
Amit Gupta is the creator of FreeDematAccount.in, a website that specializes in Demat accounts and provides assistance to all its users in navigating through complicated decisions. After completing his high school certification, Amit spent half a decade learning about Demat accounts from brokerages. Before forming FreeDematAccount.in, Amit worked for a Demat account brokerage.