Demat account is very similar to normal bank accounts. The demat account permits the accountholder to store the securities such as bonds, shares, and mutual funds units online.
Demat accounts also hold all your investments. It is important to keep track closely to the account and must know the balance details.
If you are one who is regularly selling and buying the share in the stock market, then you can know how to check the demat account balance. This article tells you all details about the demat account balance, including why you should the demat account balance and how to check the demat account balance.
Demat account balance
Demat account balance is usually the overview of numbers, share values, and other securities that are currently contained in the demat account. And as you sell and buy the securities on the stock market, then your demat account balance slightly goes up or down.
The good thing is that you can also open demat account for minors. You can store your stocks and securities safely in your demat account, similar to safely storing your savings in the bank account.
Reasons to check the demat account balance.
As we already tell you, the balance in the demat account fluctuates regularly according to your selling and buying movements of securities.
- So, it is important to keep track of the demat account balance to make sure whether the demat account is debited or credited with every transaction and with the right amount every time.
- Another reason to must check demat account balance is to ensure that there are no mistakes, discrepancies, or unauthorized transfers from your demat account.
- It is more important in the case of buying shares because they are only credited to your demat account within T+2 days.
For example, if you open a trading account through a broker, then you have to sign the agreements that are called a power of attorney. This agreement will give access to your demat account to stockbrokers, and they make the transfer when required.
But sometimes, they misuse your demat account and make unauthorized transfers, so there is a huge need to check the demat account balance.
How to check the demat account balance
When you understand the importance of checking the demat account balance, you have to understand how to actually check the demat account balance. Following are some methods to check the demat account balance.
- Through demat account statement
The demat account statements consist of a host of information related to your demat account, consisting of the current balance. You can easily know the demat account balance once make you look at the demat account statements.
- Through trading account
If you have to check the demat account balance at the time between the issues date of two statements, then the first method may not work. In this case, you will easily check the demat account balance by make login into your trading account.
Conclusion
As you can see in this article, it is easy to check the demat account balance. This process only takes a few minutes to check.
