With the evolution of technology, various processes have registered a drastic transformation, and securities trading is one of them. Since the concept of dematerialisation took centre stage, the process of securities trading, starting from the placement of orders to the execution of transactions, has become quicker, more accessible, and highly cost-effective.
As a result, the market is being considered a feasible investment avenue by an increasing number of first-time investors. If you wish to participate in the market, you can open a free demat account and trading account, and start your investing journey.
In this article, we shall discuss the process of opening a free demat account and the meaning and components of a statement of demat holdings.
How To Open A Free Demat Account
A demat account and trading account are important cogs in the stock trading mechanism. In order to place orders with stock exchanges to buy or sell securities, you are required to have a functional trading account. For the delivery and storage of the securities thus purchased, you need a demat account.
There are several authorised depository participants who offer free demat account, and you can open such an account online by visiting their official website and completing the account opening formalities. The entire process is paperless and seamless.
What Is A Demat Account Holding Statement
Once you have opened a demat account and trading account, you can add funds to the latter and start investing in various types of securities, ranging from shares to debentures, mutual funds to bonds.
Every transaction you make through your demat and trading account is recorded, and can be accessed whenever required. Similarly, your demat securities are safely held in your demat account, and you can check the entire list of said securities in a document termed as Statement of Demat Holdings.
This statement contains detailed information about your demat holdings, and is critical to portfolio monitoring.
Components Of A Statement Of Demat Holdings
Your Statement of Demat Holdings comprises key information about your market-linked securities, and shed light on metrics such as:
- The name of each security
- The quantity you hold of each security
- The present market value of each security
- The purchasing price of each security
- The category of each security – free to trade, locked, or pledged
- Various types of balances of, namely, current balance, free balance, locked in balance, and pledged balance.
How To Access Your Statement Of Demat Holdings
It is pivotal to check your statement of demat holdings on a periodic basis. Not only does doing so enable you to monitor your demat account and ensure each transaction has been completed as scheduled, but it also enables you to identify any unauthorised transactions and/ or discrepancies (and report them).
Your depository participant is legally obliged to share your demat account statement on a periodic basis. However, you can also access the statement of demat holdings through your DP’s official platform or the official websites of the Central Depository Services Limited or the National Securities Depository Limited. Here is how you can check your Statement of Demat Holdings:
- Through your DP’s website or mobile application
- Login to your depository participant’s official website or mobile application.
- Search for the option titled accounts, statements, portfolio, or ledger.
- Select the option to check or download your statement of demat holdings, enter the date range for the statement, and click on submit or download.
- Your statement of demat holdings shall be downloaded.
- Through NSDL or CDSL
- Visit the website of NSDL or CDSL.
- Select the option for Consolidated Account Statement and log in.
- Enter the required information, including your DP ID, Permanent Account Number, date of birth, etc.
- Generate a One Time Password to be shared on your registered email address or mobile number.
- Enter the aforementioned OTP to complete login.
- Download the statement of demat holdings.
The Bottomline
You must peruse your statement of demat holdings regularly, and check that all the securities that should be in your demat account are there. Should you find any discrepancy in the statement, you must report it to your depository participant without delay.
Whether you have opened a free demat account or a fully paid demat account, you can access your demat account holding statement through the DP’s platforms and those of the CDSL/ NSDL.