What is a Demat Account Holding Statement?

Written by Jainam Resources

Last Updated on: August 14, 2024

Introduction

When you Open Demat Account and buy, sell, trade, or do any kind of transaction, the Demat Account provider sends an email to the individual with a statement attached. If an individual holds shares or securities in his/her demat account, they will receive a Demat Account Holding Statement. This statement is a replacement of the physical share certificates in an electronic form that is available in digital records. 

The Demat Account Holding Statement is an important document for an investor as it includes the details of their portfolio, like the number of shares held, the cost acquisition, investments made in the Demat account, and current market value. With the help of this statement, an investor can keep track of their investment records and buy or sell securities effectively. 

As we move to the details, we will explore what a demat account holding statement is all about and what role will it play in monitoring your demat holdings. 

What is a Demat Account?

Before diving into the specifics of a Holding Statement, it’s essential to grasp the concept of Demat Accounts. A Demat Account, short for Dematerialized Account, is an electronic account that holds securities in dematerialized or electronic format. With a Demat Account, there’s no need for physical certificates. It provides a convenient way to trade and invest in securities.

What is a Demat Account Holding Statement, then?

A Demat Account Holding Statement is a document that summarizes the securities held in a Demat account. It includes details such as the name of the security, the quantity held, the acquisition cost, the market value, and the current status of each security.

This statement is essential for investors, helping them track their investment portfolio and monitor their holdings. It provides information on the status of investments, including dividends, bonus issues, and other corporate actions.

For taxation purposes, the statement is valuable as it records the cost of acquisition and the market value of the securities. This information is crucial for calculating capital gains or losses.

The Depository Participant (DP) where the Demat account is held usually issues the statement. It is provided at regular intervals—monthly or quarterly—or upon request by the account holder.

The statement can be obtained in either physical or electronic form. In electronic form, it is sent to the registered email address of the account holder, while in physical form, it is mailed to the registered address.

Components of Demat Holding Statement

A Demat Holding Statement provides a detailed summary of the securities held in a Demat account. Here are the key components typically found in a Demat Holding Statement:

1. Account Information

• Account Holder’s Name: The name of the person or entity holding the demat account.
• Account Number: The unique number assigned to the demat account.
• Depository Participant (DP) Details: Information about the DP, including name, address, and DP ID.

2. Statement Date

The date on which the holding statement is generated.

3. Security Details

• ISIN (International Securities Identification Number): A unique identifier for each security.
• Security Name: The name of the company or issuer of the security.
• Type of Security: Specifies the type of security, such as equity shares, bonds, mutual funds, etc.

4. Holding Details

• Quantity Held: The number of units or shares held in the account.
• Acquisition Date: The date on which the securities were acquired.
• Cost of Acquisition: The price at which the securities were originally purchased.
• Market Value: The current market value of the securities based on the latest available price.

5. Status of Holdings

Indicates the current status of the securities, such as active, pledged, or frozen.

6. Corporate Actions

• Dividends: Information on dividend payments received or pending.
• Bonus Issues: Details of any bonus shares received.
• Rights Issues: Information on rights issues, if applicable.
• Split: Details of any stock splits that have occurred.

7. Transaction Summary

A summary of recent transactions, including purchases, sales, transfers, and other changes to the holdings.

8. Other Information

• Nominee Details: Information about the nominee, if a nomination has been registered.
• Pledge Information: Details of any securities that have been pledged as collateral.
• Free/Locked-In Holdings: Information on securities that are free to trade and those that are locked in due to regulatory requirements or other reasons.

Read More: Convert Physical Shares to Demat

Types of Demat Holding Statements

Demat holding statements provide investors with an overview of their securities held in electronic form. There are several types of demat holding statements, each serving a specific purpose and providing different kinds of information:

1. Regular Holding Statement

• This statement provides a summary of all securities held in the demat account as of a specific date.
• Includes details such as the names of securities, quantities held, ISINs, acquisition dates, cost of acquisition, and current market value.
• Typically issued monthly or quarterly, and also available upon request.

2. Transaction Statement

• This statement records all transactions that have occurred in the demat account over a specific period.
• Details of debits (sales), credits (purchases), transfers, pledges, and other transactions, including transaction dates, quantities, and prices.
• Issued periodically, usually monthly, or upon request by the account holder.

3. Corporate Action Statement

• This statement provides information about corporate actions affecting the securities held in the Demat account.
• Includes details of dividends, bonus issues, rights issues, stock splits, mergers, and other corporate actions.
• Issued as and when corporate actions occur.

4. Annual Statement

• A comprehensive statement summarizing all holdings and transactions over the entire financial year.
• Provides an overview of all securities held, transactions completed, and corporate actions taken during the year.
• Issued annually at the end of the financial year.

5. Pledge Statement

• This statement details securities that have been pledged as collateral.
• Includes information about the securities pledged, the pledgee (to whom they are pledged), quantities, pledge creation date, and pledge status.
• Issued periodically or upon request.

6. Free/Locked-In Holdings Statement

• This statement distinguishes between free holdings (securities available for trading) and locked-in holdings (securities that cannot be traded due to regulatory or contractual restrictions).
• Details of free and locked-in securities, including quantities and reasons for any restrictions.
• Issued periodically or upon request.

7. Nominee Statement

• Provides information about the nominee(s) registered for the demat account.
• Includes details such as the nominee’s name, relationship with the account holder, and share of the holdings assigned to the nominee.
• Typically provided upon the addition or update of nominee information.

How to Access or Download Your Demat Holding Statement?

STEP – 1: Log in to Your Online Trading Platform

Access your demat account through the online trading platform provided by your Depository Participant (DP). This could be a website or a mobile app. Use your credentials (user ID and password) to log in.

STEP – 2: Navigate to the Demat Section

Once logged in, find and click on the section related to your demat account. This is often labeled as a “Demat Account,” “Holdings,” or “Portfolio.”

STEP – 3: Select Holding Statement Option

Within the demat section, look for the option to view or download your holding statement. It may be labeled as “Holding Statement,” “Account Statement,” or similar.

STEP – 4: Specify the Date Range

Choose the period for which you want the statement. You can typically select from predefined options like monthly, quarterly, or specify a custom date range.

STEP – 5: Request the Statement

After selecting the date range, click on the option to generate or request the statement. This action will initiate the creation of your holding statement.

STEP – 6: Download or View the Statement

Once the statement is generated, you will have the option to view it on-screen or download it. If downloading, choose the preferred format (PDF, Excel, etc.) and save the file to your device.

STEP – 7: Check Your Email

Some DPs automatically send a copy of the statement to your registered email address. Check your inbox for the emailed statement if applicable.

Benefits of Your Demat Account Holding Statement

1. Portfolio Overview:

Your statement of demat holdings provides a comprehensive summary of all the securities you hold. It includes details like the name of the security, quantity, acquisition cost, and current market value, offering a clear snapshot of your investment portfolio.

2. Simplified Record-Keeping:

It simplifies record-keeping by consolidating all your investment information in one place. This makes it easier to track and manage your investments without the hassle of handling physical certificates.

3. Ease of Transactions:

The statement facilitates easy and quick transactions. It helps you keep track of your holdings, making it easier to buy, sell, or transfer securities efficiently.

4. Corporate Actions Tracking:

It helps you monitor corporate actions like dividends, bonus issues, stock splits, and rights issues. This ensures you receive all entitlements and can act on them promptly.

5. Taxation Support:

The holding statement provides detailed records of acquisition costs and market values, which are essential for calculating capital gains or losses for tax purposes. This simplifies the tax filing process.

6. Enhanced Security:

Holding securities in electronic form reduces the risks associated with physical certificates, such as loss, theft, or damage. The statement provides a secure and accessible record of your holdings.

7. Better Financial Planning:

With a clear view of your investments, you can make more informed financial decisions and plan your investment strategy effectively.

Read More: Close Demat Account Online

Importance of Regularly Monitoring Holding Statements

1. Accurate Portfolio Management & Error Detection:

• Regularly monitoring your holding statements ensures that your portfolio information is up-to-date. This helps in making informed investment decisions and adjusting your portfolio according to market conditions.
• By reviewing your statements frequently, you can quickly identify and rectify any discrepancies or errors in your holdings. This includes incorrect entries, unauthorized transactions, or missing securities.

2. Timely Action on Corporate Events & Fraud Prevention:

• Regular monitoring allows you to stay informed about corporate actions such as dividends, bonuses, rights issues, and stock splits. This enables you to act promptly and make the most of these opportunities.
• Keeping a close eye on your statements helps in the early detection of any fraudulent activities or unauthorized transactions. This allows you to take immediate action to secure your investments.

3. Financial Planning and Review:

• Regular reviews of your holding statements provide insights into the performance of your investments. Assess whether your investments align with your financial goals and determine if you need to make any changes.

4. Tax Compliance & Peace of Mind:

• Consistently checking your holding statements ensures that you have accurate records for tax purposes. This helps in calculating capital gains or losses accurately and ensuring compliance with tax regulations.
• Knowing that your investments are regularly monitored and accurately recorded gives you peace of mind. It reduces the risk of unexpected issues and ensures that your financial assets are well-managed.

Common Issues with Holding Statements

Some common issues that investors may encounter with Holding Statements include missing securities, incorrect quantity or details, unauthorized transactions, and technical errors. Promptly addressing these issues is crucial to maintaining the integrity of the account.

Resolving Discrepancies in Your Holding Statement

In case of discrepancies or errors in the Holding Statement, investors should contact their DP holding statement or depository immediately to initiate the resolution process. Providing supporting documents and details can expedite the correction of inaccuracies.

In Short!

a Demat Account Holding Statement is a vital document that enables investors to keep track of their securities holdings efficiently. Investors can manage their portfolios efficiently by understanding how a Demat account holding statement works. Always check the Demat account holding statement regularly to stay updated about your portfolio.  

What type of demat account holding statement are you looking for in your demat account? 

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