If you have a Demat account I am pretty sure you would have received “Your Stock Broker Reported Your Fund Balance” SMS and wondered what is it all about. These are SMS sent by Stock exchanges – NSE (from VK-NSESMS, JS-NSESMS etc.) and BSE (from QP-BSELTD, VM-BSELTD etc.) in response to SEBI’s Enhanced Supervision of Stock Brokers/Depository Participants initiative.
In addition to notification by SMS, the stock exchange would send elaborate details by email as well. I have a Demat account with ICICI bank. Every month I get below email from BSE Ltd (info@bseindia.in), along with attachment that contains all details.
"Your Stock Broker ICICI SECURITIES LTD. has reported the
details of Funds balance and Securities balance, securities
pledged, last settlement date and ISIN wise details of
securities as on < date > for UCC – < your Unique Client Code >
to BSE which is attached."
Your Stock Broker Reported Your Fund Balance 0
Now the confusing part. Most of you would have observed the received SMS says balance as zero, even if you have securities held in your Demat account.
"Your Stock Broker reported your fund balance
Rs.0 & securities balance 0 as on < date >. Balances to not
cover your bank, DP & PMS balance with broking entity. Check
details at . If email Id not correct, kindly
update with your broker - National Stock Exchange"
Fund and securities balance reported here is not what is held in your personal Demat account, but rather the funds and securities lying in the brokers account on behalf of the client (yourself). These are funds/securities that are pledged, and moved from the client’s Demat account to broker’s account. A stock broker can pledge the securities held by client, if client owes money to stock broker.
A broker is allowed to move fund/securities from client account only for valid reasons like recovery of brokerage, any statutory dues, fund shortfall for debit balance clients subject to below norms:
Securities can be pledged only for clients that has debit balance in their ledger.
Should not pledge securities higher than value of client’s debit balance in ledger.
Stock broker should send statement with details about pledge, funding to client as and when pledging/release is done.
Pledging requires prior approval of client.
Stock broker is prohibited from misusing clients funds and securities for their own obligations or proprietary purposes.
How Does This Report Benefit You?
If you have any funds/securities that are pledged, potentially a broker could divert them for their self use without you being aware of it. Post the implementation of “Enhanced Supervision of Stock Brokers and Depository Participants” measures by SEBI the Stock exchanges (NSE/BSE) are required to send this report to you periodically. This makes any malpractice by broker not possible without client’s notice.
On a related note, Commodities exchange also sends reports containing funds and securities balance. SMS received from NCDEX (National Commodities and Derivatives Exchange) would have sender as VK-NCDEXL.
Email Reports Attachment
Depending on broker with whom you have account you would receive email report from NSE or BSE. For accounts held with NSE you will get email from “nse_alerts” (nse_alerts@nse.co.in) with subject “Funds/Securities Balance”. For accounts held with BSE, email would be from “BSE Ltd” (info@bseindia.in) with subject “Details of your fund balance and securities balance as on < date > with Trading member < broker name >”
The email would contain the report as PDF attachment (password protected with PAN number) that has details about list & number of securities(ISIN), Fund balance, number of commodities along with date of report & client code. The balance details would be all zeros (unless other wise you have pledge). For an example, above is a report I received from NSE for my Groww account.
I’ve closed my ICICI Direct demat account but still I got messages like this:
(Your Stock broker ICICI SECURITIES LIMITED. reported your fund balance Rs.0 & securities balance 0 as on end of 02-oct-2021. Balances do not cover your bank, DP & PMS balance with broking entity. Check details at my.email@gmail.com. If email Id not correct, kindly update with your broker – National Stock Exchange.)
Please help me why I got messages like this after I’ve closed my demat account.
Hi, How long since you closed your account.
You may cross check your NSDL / CDSL Consolidated Account Statements that you receive periodically.
You should be able to see any Demat account that is active in your CAS (Consolidated Account Statement).
If your account is closed you should not see it in CAS (or if you had just closed give a couple of months for it to get purged out)
I had closed my Demat account in July. In confirmation mail of account closing they mentioned a demat account number and now in CAS they mentioned unique client code both are different.
Please help me.
Do we need to take any action for this?
This is a informative message sent to every one with Demat account. No specific action is usually required on this.
Hlo sir please me
Sir i have a demat account in iifl security by mistakenly so but i haven’t to invest on any security in iifl so i have to close this account that I haven’t sufficient fund
How to close this demat account
Hlo sir please me
Sir i have a demat account in iifl security by mistakenly so but i haven’t to invest on any security in iifl so i have to close this account that I haven’t sufficient fund
How to close this demat account
Hey, I have closed my account and still got the messages from NSESMS. What does this mean?
My broker has confirmed my account has been closed buy I still receive these messages
Why do we get older messages ? Meaning in your screenshot you got reported fund balance of june 5 on june 22. I got a message today i.e march 8 stating reported bal as on 29th jan is xxxx. How to fix this problem so i get today’s balance instead ?
I am facing the same problem. @rupee magnet desk, can you suggest anything on this?
Best of luck
Hi, i received a message from NSE stating that my fund balance is in negative and security balance is zero .However i havent used my demant account for anything how can i get my fund balance in negative ..?? i tried to close my demant account but it stated that i have some limits and all and i have to clear it first.. but i dont even know how to clear them .. please help me with this.
im getting the message from nse that your fund and security balance is 0. But i have money in my zerodha account. i tried to withdraw my amount, but it is not crediting in to my bank account. what should i do now ?
You can reach out to Zerodha customer care in your case to check why your withdrawal requests are failing.
ICICI SECURITIES at EOD 05/08/2023 reported your Fund bal Rs -2478.000 & Securities bal 0. This excludes your Bank, DP and PMS bal with the broker-BSE
I Recieved this message where I’m not even using demat account, 1year ago one person called me and said do you want to do a part time job and she created this account. I don’t want what is this message is about.
Sir how can I closed this sms. Because I don’t know about it. Please tell me how to closed this.