A demat account is a must-have for anyone looking to invest in the Indian stock market. It is a digital account that holds your shares and securities in an electronic format, making it easy to manage your investments and keep track of your portfolio. However, it’s important to regularly check your demat account status to ensure that your holdings are up-to-date and secure. Once you open a demat account, checking your demat account status is important for several reasons mentioned below.
Why Should You Check Your Demat Account?
Monitoring Your Investments: Checking your demat account status allows you to monitor your investments and keep track of the securities you own. You can ensure that your holdings are safe and secure, and that there are no unauthorized transactions in your account.
Verification of Trades: By checking your demat account status, you can verify the trades you have executed and ensure that they have been settled properly. You can also check the prices at which your securities have been bought or sold, and ensure that you are getting the best prices for your investments.
Tax Purposes: Checking your demat account status is important for tax purposes. You can use the status report to calculate your capital gains or losses on the sale of securities and report them in your tax returns.
Detecting Errors or Fraud: Checking your demat account status regularly can help you detect any errors or fraudulent activity in your account. You can report any unauthorized transactions or discrepancies to your Depository Participant (DP) or the authorities immediately.
Maintaining Accurate Records: Keeping accurate records of your investments is essential for effective portfolio management. By checking your demat account status, you can maintain accurate records of your holdings and transactions, and make informed decisions based on your investment objectives and risk appetite.
How To Check Your Demat Account Status?
You can check the status of your demat account via the demat account app. Here’s how you can check your demat account status:
Log into your account: To check your demat account status, you need to log into your account through your depository participants (DP) online portal or mobile app. If you don’t have access to online services, you can also visit a branch office to check your account status.
Check your holdings: Once you are logged into your account, you can check your holdings to see what shares and securities you own. You can view the quantity, price, and value of each holding, as well as the overall value of your portfolio.
Review your transactions: Your demat account also contains a record of all the transactions you have made, including purchases, sales, and transfers. You can review these transactions to make sure that everything is correct and up-to-date. If you see any discrepancies, contact your DP as soon as possible.
Check your account balance: Your demat account also displays your account balance, which is the total amount of money you have in your account after accounting for all your purchases, sales, and other transactions. Make sure your account balance is correct and that you have enough funds to cover any future transactions.
Monitor your portfolio: Regularly checking your demat account status also allows you to monitor your portfolio and see how your investments are performing. You can track the performance of each holding, as well as your overall portfolio, and make any necessary changes to your investment strategy.
Check for any alerts: Some DP’s also offer alerts and notifications that are sent to your registered email address or mobile number. These alerts inform you about important updates and changes to your account, such as new holdings or transactions, so be sure to check for any alerts regularly.
Get statements: You can also request a statement of your demat account from your DP. This is a detailed report of all your holdings, transactions, and account balance, and can be used for tax and other purposes. You can request a statement at any time and it will be sent to you either electronically or by mail.
In conclusion, checking your demat account status is an important step in managing your investments and ensuring that your portfolio is secure. By following these steps, you can keep track of your holdings, transactions, and account balance, and make any necessary changes to your investment strategy. If you have any questions or concerns about your demat account status, reach out to your DP for assistance.