Your holdings are shares you purchase using your demat account. Prior to the advent of online trading shares were still held in physical form. Online demat accounts allow shares to be held in non-physical dematerialized form. A demat holding statement provides details about all shares you have, just like a bank statement which gives information about your assets.
You need to open a Demat account with a participant or DPA to be able to purchase and sell shares online. DPs are registered at a central depository - either CSDL, NSDL. This keeps a record all demat transactions. The role of a broker between the customer's stock exchange and DP is also fulfilled by brokers. when a purchase order is placed what happens? It may seem simple to click the buy button. However, it is actually a complicated process that takes place over many days and involves multiple steps.
1.The shares are first transferred to the DP’s pool account. From there, they are transferred to client’s account. This usually takes less than T+2 business day, where T is the date that the transaction was initiated.
2. You must clear funds from the bank account that is linked to the demat account. This means you need sufficient funds to pay for the transaction.
3. Finally, shares are transferred to your demat bank account. If you keep shares in your account longer than one day, they become holdings. They will also be displayed as positions if you sell them the same day.
How can you be sure that the shares have been transferred to your account? The demat holding statement is your best bet. The demat account statement serves as a conclusive proof of ownership. This may sound obvious, but it is often the case that DPs hold the shares in their pool account rather than transferring them to clients. It is important to keep an eye on your demat holding statements. A demat account statement gives you a complete account of all your shares, including the date they were bought, current value, and any other pertinent details. Demat holding statements not only give you an accurate picture of your assets but also provide tax information. Demat holding statements can be downloaded easily.
You can view your demat holdings statement in two different ways:
India has two major central depositories: CSDL or NSDL. You can access your demat account statement from either NSDL or CSDL directly, depending on the national depository where your account is registered. Demat accounts that are registered with the NSDL typically have a 14-digit number, while those that are registered with CSDL typically have a 16-digit number. To view your demat account holding statements, log on to the website for the appropriate national depository.
Your broker will provide you with a trading platform that allows you to buy and sell stocks online when you open an online account. This trading platform allows you to view your demat account holding statements. In the Angel One case, for instance, you will need to log in to Angel One using your login ID. Next, open the dashboard and click on "Reports", followed by "Security Holdings". You can view your demat account holding statements or download them as you wish. Similar steps may be used for the DP of your trading account.
The demat account holding statements give a summary of all shares in your account, their dates and current value. You should monitor your demat holding statement to ensure that all shares purchased are transferred to your demat bank account. This is crucial because there are many intermediaries, such as the DP, depository and stock exchange, so the transfer of shares can sometimes be stuck at any of these intermediaries. The demat account holding statement provides conclusive evidence that you own shares. Also can be used Tax purposes. Your demat account holding statements can be downloaded from either the website of the relevant national deposit or via your broker.