A Demat is a secure way of holding shares digitally. It allows you to handle all your investments on the Internet. In essence, it means that you can view or conduct investments with the best safety measures involved at any time and from anywhere.
Every trader dealing in stocks, bonds, ETFs, and mutual funds must have a dematerialised account, commonly called a Demat. A Demat account is one of the necessary conditions for owning shares and securities during market trading, as it facilitates the monitoring thereof. In case he does not have a Demat account, delivery of his shares is not possible.
In a virtual storage facility known as a Demat account, one can find all types of stocks or bonds whereas normal bank accounts only contain cash. Brokers buy & sell securities for their clients and deposits in their respective accounts.
Securities such as shares and debentures are kept in digital form in a Demat account while an ordinary bank account contains only cash. The former helps in buying or selling stocks on the stock market while the latter can perform cash transactions.
For an investor, proper monitoring of the Demat account balance must be observed so that individual user can stay well aware of his investments and make intelligent choices.
Keeping track of your Demat account balance will help you make informed and better decisions in trading. Know to check your Demat account balance with Bigul. Here are the three primary methods to check the balance:
A dematerialised account is usually opened in a way similar to a digital platform by a depository participant, for example, on the e-banking or m-banking platform. It is this platform that the end-user provides the facility to see their Demat account balance and statements. After creating a zero balance Demat account, people, with the help of the portal, may get statistics on their accounts as well as the Demat status themselves
Though Demat accounts are often associated with a person’s trading account, the trading account can be leveraged for other purposes. Users can use their existing login credentials to access their trading account, which in turn loads their particular Demat account balances in real-time.
People who are maintaining Demat accounts (DMAT) across different portals often need a single view of all their holdings. In these instances, they can obtain a Consolidated Account Statement (CAS) that will allow them to see all the transactions they have made on the account in one place.
In case you have multiple Demat accounts with different depository participants in such a case, you can view a consolidated account statement. CAS is a statement that provides an overview of all your holdings.
To get your Customer Account Statement (CAS), you can use the following:
NSDL spare bank cheques include money markets like, equity shares, preference shares, units in mutual funds, sovereign gold bonds, corporation’s attachments or debentures, etc and it includes for instance secured debt instruments; money market instruments in addition to government securities held within the dematerialised form.
This statement contains your name, PAN Card number, Demat account number, date of birth, etc. You can check it through the statement. In case the information is incorrect, you can get it corrected from the Depository Participant.
A folio number is a unique number assigned to each investor. Your investments are tagged with this number. This too could be rectified in case of errors from the DP.
This shall contain information concerning all your mutual fund investments.
Any dividends received from investments since inception and till date, this statement is issued will appear here.
The price of each unit in the investment. This statement will contain the NAV of each investment only till the date of the statement. Remember that NAV changes constantly, and therefore this may not be the exact cost when you see your statement.
This means a view of all the transactions done by you from your Demat account. This also means each purchase and sale taken by you.
It is very important to keep track of shares. You must ensure that the broker has transferred the shares you purchased from the common pool account to your Demat account after settlement and payout.
The assumption is that when the payment is carried forward, shares will get transferred on their own. Most of the time this is true. But it is also not uncommon for some of the purchased shares not to have been credited into the purchaser’s Demat account.
Hence, your broker could be lending out your shares to someone else, which you may not even know. Secondly, your broker may use your shares to meet their margin requirements at any given exchange.
It is quite evident that checking the balance in your Demat account is very simple, and the process consumes only a couple of minutes. This very simple exercise should not be missed from time to time; it may help you discover discrepancies and mistakes on time and will thereby keep you in a better position to have them rectified.
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