In this video, we talk about the dp holding statement, and the important things to know about your depository participant holding statement.

In this video, we talk about the dp holding statement, and the important things to know about your depository participant holding statement. So let’s jump right in. The demat account or DP holding account is the account where shares are kept in electronic form. Just like a bank keeps cash in electronic form, similarly, shares and securities are held in an electronic form in a demat account. this demat account is maintained by depository participants and these depository participants are generally banks or stock brokers. To store the shares in the electronic format a person needs to open a demat account with a depository participant. Once the DP account is opened the demat account number is a 16 digit number out of which the first eight digits will be the DP ID and the last eight digits will be the client ID.

In case one’s depository is national securities depository limited or NSDL then demat account number would start with IN followed by a six digit DP ID and a eight digit client ID. In India, the DPs are members of the NSDL or the CDSL (Central Depository Services Limited). Whenever shares are bought on an exchange, the transfer of shares takes place after t+2 days that is two working days after the trade deal. Let us look at a sample DP statement. We see that there is a date column where different transactions takes place. The various securities have different international securities identification or ISI numbers as mentioned in the second column. The third column lists the shares or the mutual funds in which any transaction has taken place. In the fourth column the quantity of the shares or the mutual fund units is mentioned which have been bought and sold. The remarks column suggests whether the shares have been bought or sold. so this is basically a summary of all the transactions that have taken place on a day-by-day basis. This is very similar to a bank passbook which details the transactions. To trade in chairs one needs to have two accounts – a trading account with stock broker and a demat account with the DP.

One can have these two accounts with different entities, but it is generally recommended that one keeps the trading and the depository accounts with the same company to avoid settlement issues. One needs to ensure that your broker transfers the purchased shares from the common pool account to your demat account. It is generally assumed that once the shares have been purchased it will be automatically transferred to the demat account from the common pool account. Generally this is the case, but in many cases the purchased shares are not transferred to the investors demat account and it is kept in the common pool account and is utilized for the purpose of margin requirements of other clients. While some of the DPS send their account holding statement on a periodic basis, some do not. Investors can take online access to their demat account or subscribe to SMS based alerts to get an alert in case of both debit and credit of shares. Both CDSL & NSDL provide online facility and SMS facility for the same.