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Why Are Purchased Shares Not Visible in The Holdings

29 Nov 2023

Introduction

You purchased shares in a reputable company, but soon find out that it is not visible in your holdings. This makes you puzzled and worried at the same time. Now, you are thinking of the potential reasons but couldn’t find any, which is hampering your portfolio management. 

However, let us tell you that this type of problem can occur due to different factors, like delays in processing, brokerage discrepancies, or technical glitches. In this blog, we will delve into these potential causes so that you can take proactive steps to rectify the situation properly. 

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So, move further in it to ensure a transparent and accurate overview of your investments. 

What are the reasons for invisible purchased shares in the holdings?

The specific reasons that contribute to the invisibility of purchased shares in the holdings are as follows:

  1. Trade-to-Trade (T2T) Stock Transactions: Intraday or BTST trading is not permitted for T2T stocks. If a T2T stock is sold from your holdings and repurchased on the same day, it will not appear in your holdings until it is settled on T+1.
  2. Shares’ Short-Delivery: If the seller fails to deliver the shares on time, an auction is conducted by the exchange to provide the buyer with the same quantity of shares. This auction is notified to clients either via SMS or email. 

Being aware of these reasons can help you navigate the complexities of share visibility in your holdings. When you adhere to the settlement cycle and understand trading restrictions, you tend to manage your investments more effectively and maintain a clear overview of your portfolio. 

Where can you view the purchased shares in the holdings?

You can discover your purchased shares by following these simple steps: 

  1. Click on Portfolio.
  2. Select “Holdings” from the drop-down menu. 
  3. Under the holding tab, the purchased shares are displayed on the next trading day (T+1). For example, if you buy or sell stocks on Wednesday, they will be visible on your holdings or reduced from your holdings starting from Thursday. 

Why are the purchased shares not visible even after the settlement cycle?

Even after T+1 days, the shares are not visible in your holdings. The reasons for this problem have been discussed below.

Insufficient Shares Bought: 

Although you may have ordered a specific number of shares, those shares might not be immediately available in the market. The transfer will be completed once the seller makes the shares accessible. This situation is more common with large-cap stocks or firms with high trading volumes. In cases where the shares cannot be obtained, an auction is conducted. You will either receive the shares within 5-6 days or a refund. You will get notified of this auction from your depository participant.

Broker Awaiting Payment: 

Your brokers may withhold the transfer if you have outstanding dues. Modest fees, such as unpaid margins, market-to-market losses, or annual account maintenance charges, can accumulate over time. Clearing these dues is essential to ensure the timely credit of shares. Contact your broker or depository participant to resolve any outstanding payments.

Therefore, if your shares are not credited to your account within T+1 day, it is crucial to contact your broker. Understanding the factors responsible for invisible shares in the holdings allows you to take appropriate action and ensure the smooth processing of your shareholdings.  

Final Thoughts

Timely and accurate transfer of shares to your holdings is vital for effective portfolio management. Although various reasons can cause this problem, it is essential to maintain open communication with your broker or depository participant to resolve any outstanding issues promptly. When you are proactive and vigilant, you can ensure a seamless experience in managing your investments. Remember, a transparent and efficient system plays a crucial role in maintaining trust and confidence in the financial markets. Stay informed, take necessary actions, and enjoy the benefits of a well-managed Demat account

 

Popular Stocks:  ICICI Bank Share Price | HDFC Bank Share Price | Britannia Share Price | Divislab Share Price | Tata Consumer Share Price

 

Related Articles: When do Bonus Shares get credited in Demat Account | Understanding Sharpe versus Treynor in evaluating MF portfolios

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