Why Shares not Reflecting in Demat Account

Why Shares not Reflecting in Demat Account

Investors often get perplexed when their acquired shares fail to reflect in their Demat accounts. 

Even though this situation is normal, it can sometimes be disturbing. Administrative delays or technological issues can be some of the reasons for this disparity. Also, the buying and selling of shares involves various steps which can be time-consuming. With the help of this blog, understand the reasons why shares not reflecting in demat account and how to track your investment effectively. 

What is T+2 Settlement?

The t+2 settlement means that within two business days after you make the trade, everything should be settled. In simple terms, it means the stocks you bought should show up in your Demat account, and the money should be transferred to the seller. By understanding t +2 settlement will help you to know when to expect your purchased shares to appear in your account, making the trading experience easy and more transparent.

Additionally, the T+2 settlement system adds a layer of security and reliability to the trading process. They have a set timeline for settlement, which reduces the risk of disputes and ensures that transactions will be completed on time. With this system, liquidity is also maintained in the market, as investors can trust that their trades will be settled efficiently. Understanding the T+2 trade settlement meaning, although it could appear like a technical element, can help investors to make wise judgments and confidently go through the stock market.

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Table of Content

  1. What is T+2 Settlement?
  2. Reasons for invisible purchased shares in the holdings?
  3. Where can you view the purchased shares in the holdings?
  4. Why purchased shares not visible even after the settlement cycle?

Reasons for invisible purchased shares in the holdings?

The reasons for invisible purchased shares in the holdings can be:

  1. Processing Delays:

    Sometimes due to system glitches or issues with the broker, you may face difficulties while transferring your shares from the stock market to your Demat account. These problems are usually resolved quickly, but they may cause a temporary delay in the visibility of the shares you have acquired.
  2. Discrepancy in Details:

    If there's a mistake in the information provided, such as the unique identification number or the Demat account number, the shares will not appear in your account.
  3. Unallocated IPO Shares:

    IPOs represent an opportunity for investors to acquire shares in a newly listed company. If you've applied for shares but haven't received an allocation, they won't appear in your Demat account immediately. Instead, you'll need to wait until the shares are allotted to you by the issuing company. During this period, the IPO shares you've applied for may not reflect in your Demat account until they have been officially allocated.
  4. Transaction Troubles:

    Picture your stock transactions as cars on a highway. Sometimes, one of these cars encounters a flat tire or runs out of gas, causing it to pull over. Similarly, stock transactions can hit roadblocks due to reasons like insufficient funds or technical glitches. In such cases, the shares might not find their way into your Demat account until the issue is resolved. In the process of stock transactions, unexpected blockages can emerge, which can lead to delays. Some of the factors faced by individuals are insufficient funds or technical glitches can create transaction problems.

Where can you view the purchased shares in the holdings?

Finding your purchased shares is as easy as navigating through your trading app. Once you're logged into your trading platform or Demat account online, head over to the “Portfolio” section. Here, you'll find a drop-down menu where you can select “Holdings.” It's like opening a treasure chest to reveal your precious gems!
Under the "Holdings" tab, you'll see a list of all the shares you own. But here's the catch: the visibility of your purchased shares might not happen instantaneously. Usually, you'll spot your newly purchased shares the day after you've made the transaction, commonly referred to as T+1 in trading lingo. For instance, if you bought or sold stocks on Wednesday, keep an eye out for them in your holdings starting from Thursday.
So, by simply clicking through a few tabs and patiently waiting for the next trading day, you'll uncover the whereabouts of your purchased shares in no time!

Why purchased shares not visible even after the settlement cycle?

If you purchased shares are still nowhere to be found even after waiting for the T+1 settlement, then it's time to dig deeper into the reasons behind this situation.

  1. Shortfall in available shares:

    The most common reason for shares not reflecting in Demat account is the shortfall in available shares. A shortfall in available shares happens when there are not enough shares of a specific stock in the market to cover all the buy orders made by investors. This mostly happens when there is a limited supply of shares of a stock and a high demand for the stock. As a result, some investors may not be able to purchase the requested shares, leading to a shortfall.
  2. Pending dues with your broker:

    Another potential reason for the invisible shares could be pending dues with your broker. This is like an outstanding bill that needs to be settled before you can access your purchase. These dues could occur from various charges, such as unpaid margins, market-to-market losses, or annual account maintenance charges. These sums might not seem worth a lot at first, but over time, they can add up and have an impact on how quickly your shares are credited. It is important to contact your broker or depository participant to resolve this issue. They can help you settle any unpaid bills, ensuring a smooth process in investing.
  3. Taking action for visibility:

    In situations where IPO shares are not reflecting in the Demat account even after the T+1 period, swift action is necessary. It becomes important to contact the broker to resolve the issue. By understanding the reasons contributing to shares not reflecting in Demat account, one can take essential steps to rectify the situation, ensuring easy and fast management of the investment portfolio.

To sum up, it is important to ensure the accuracy and visibility of shares in the Demat account, whether you manage your stock market investments using a share market app or other platforms. There can be many reasons for shares not reflecting in Demat account, it is important to understand these reasons and take action accordingly. By using a share market app, you can protect your assets and improve the share trading experience. 

FAQs for Shares not Reflecting in Demat Account

If shares not reflecting in Demat account contact your broker to find out the transaction's status.

In the T+2 settlement cycle, the shares are transferred to the trader's Demat account by the DP in T+2 trading days. Even after T+2 days have elapsed, the shares will be invisible in the buyer's account.

If IPO shares not reflecting in Demat Account you should first verify the status of your application through the IPO registrar's website or by contacting your broker. 

This information is provided by your depository participant. However, you should get in touch with your broker right away if your shares are not credited to your demat account within T+2 days.

By visiting either your DP's website or your online trading account, you may verify the status of your Demat account.