What is a Demat Account Holding Statement?

While investing in the stock market, you must keep track of your investments before buying or selling securities. It makes the process of managing your investments easier, which helps you trade efficiently. In this instance, a Demat account holding statement plays an important role. This guide will help you learn what a Demat account holding statement is, its importance, how to download it and more.

Understanding the Demat Account Holding Statement

Understanding what is Demat account holding statement is essential for keeping track of your securities. A Demat account holding statement is a document that shows the details of securities that you hold in your Demat account. This electronic form of holding statement also reduces the need for physical share certificates.

You can view all the essential details regarding your investments in this statement. These include the name of securities you hold, their quantity, the cost of purchasing them, their market value, as well as their current status.

Your Demat holding statement gets automatically updated whenever you buy or sell securities through your trading account. Whenever you buy shares or units of a mutual fund, it gets included in your Demat account. All of these securities and financial instruments are seen in your Demat account holding statement. Since it records your securities and your transactions in a Demat account, you can use this statement as a reference for tax purposes. Calculating your capital gains or losses for tax purposes can be easier due to this information.

Basically, a Depository Participant (DP) issues the Demat holding statement at regular intervals. A DP issues this statement monthly or quarterly, or based on the account holder’s request.

What does a Demat Holding Statement Include?

Your Demat account holding statement provides a comprehensive overview of the transactions of your securities for a particular period. Let us see what a Demat holding statement contains:

• • Personal details: This statement contains your details like name, address, and contact number.
  • DP ID: The holding statement in your Demat account includes a DP ID which helps to identify your depository. It also ensures all of your transactions are accurately recorded.

• Current Balance: You can also see your holdings, including the total units of mutual funds and quantity of shares. A current balance displays the securities you are holding currently with their value in your Demat account.

• Folio number: The Demat account holding statement also includes your folio number which is provided to each Demat account. This unique identification number differs from one person to another.
• Transactions Summary: It also contains all your debit and credit transactions for a specific period.
• Dividend payment: This statement also shows the details of your stock and a mutual fund that pays dividends. 
• Free balance: It also consists of a free balance, which refers to securities that are free for trading.
• Locked-in balance: The account holding statement also shows the locked-in securities and assets that cannot be traded or transferred.
• Summary of Charges:  This statement also includes a summary of your charges that are levied by DP. You have to check whether the calculation of charges is correct or not. Account maintenance charges, pledge charges, and transaction charges are included in it.

Significance of Using a Demat Holding Statement

A Demat account holding statement is useful for traders to get all the details of investment activities in a single document. The below pointers will show how a Demat holding statement is significant:

• Helps to Stay Informed: Regularly checking your Demat account holding statement can help you stay up-to-date about your investment status. You may also track the performance of your portfolio and take further steps in the market.
• Effective Investment Planning: A frequent revision of this statement can allow you to make an effective plan for your investments. It helps you to identify which securities are beneficial for you based on their current performance so that you can buy or sell them.

• • Prevention from Fraudulent Activities: Checking the statement of Demat account holdings frequently can assist you in identifying unauthorised or fraudulent transactions in your account. You may take appropriate actions whenever you find any discrepancies,  and address further issues.
  • Calculation of Tax: Checking your Demat account holding statement is also helpful in calculating taxes. Since it includes the cost of securities and their market value, it can also help calculate capital gains or losses, which is significant for tax purposes.
  • Record-keeping: Most importantly, this statement helps you to keep a record of transactions and investments. From holdings of securities to their quantities, it provides a detailed overview of your holdings.

• Portfolio Diversification: Performing a regular check on the statement allows you to diversify your investment portfolio. This statement shows the areas where your portfolios may be overexposed or underexposed. Diversification of a portfolio can spread your risk on different securities.

Steps to Follow for Downloading a Demat Holding Statement

Since you have become familiar with what is demat holding statement, now you must know how to get a Demat holding statement. Below are the three ways which show how to download Demat account holding statement:

• Using Your Stockbroker Platform

Each broker has a platform for trading securities. You can also use the same platform as your broker to see or download the Demat account holding statement. After logging in to your trading account, you can find the option of accessing your account statement from the dashboard of your trading platform.

Most of the brokerage platforms have almost the same interface. Therefore, you need to find the ‘Reports’ section of your respective broker and then go to the section where you find your security holdings.

• Using the CDSL Website

You may also use the Central Depository Services Limited (CDSL) website to avail numerous services regarding investments. Follow these steps, which show how to download Demat holding statement from the CDSL website:

Step 1: Visit the CDSL portal and select the CAS Login.

Step 2: Enter your PAN number, your date of birth, and Beneficiary Owner ID. Then verify the captcha code.

Step 3: Enter the OTP you received on your mobile number to complete the verification process.

Step 4: You can see and download the statement.

• Using the NSDL Website

Being the most important depository in the stock market, the National Securities Depository Limited (NSDL) handles most of the securities of the market. Following these steps below, you can download Demat holding statement from the NSDL website:

Step 1: Go to the NSDL website and navigate to the NSDL E-CAS button.

Step 2: Put your CAS ID and PAN number in the required fields and verify the captcha code.

Step 3: You will get the statement on your email ID that you have used while registering with your stockbroker.

How Does a Demat Holding Statement Differ from a Transaction Statement?

You can see two important statements in your broker account, which are the Demat account holding statement and the transaction statement. Most of the traders often get confused between these two statements. The below table provides the differences between a holding statement and a transaction statement:

Final Thought

A Demat account holding statement helps traders keep track of their securities and identify any fraudulent transactions. Using this statement is also beneficial for calculating taxes and diversifying your investment portfolio.

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