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Have you just started investing in the stock market? Then managing a demat account would be among your priorities. In this process, your broker may have mentioned the phrase “Client Master Report” (CMR) to you, and you might wonder what it means.
The Client Master Report (CMR) serves as official documentation of the securities you hold and a certificate for your demat account. It is also vital for enabling the safe and effective transfer of shares across demat accounts held by different brokers.
If you want to know what a client master report is in detail and why it matters, you are in the right place. Let’s begin!
What is a CMR report?
The term “Client Master Report” or “Client Master List” applies to a digitally signed PDF document that a broker gives a customer, also known as a CMR copy. It helps with off-market share transfers as well as the linking of demat accounts with trading accounts.
There are usually four pieces of information with credentials in the client master list format. The CMR report includes details about a user’s
- Demat account,
- Individual data (name, address, mobile number, email address, DOB),
- Demat ID,
- Account status and
- KYC data (Aadhaar number, PAN, nomination details, bank details, and more).
Simply put, it’s a record with all the details about the demat account holder and the financial activities they have performed. In off-market transactions, this is the most sought-after document.
Also, a CMR copy is used to connect a trading account from one brokerage to another brokerage’s demat account and transfer stocks between brokers in a demat account. Shares may be transferred from CDSL to NSDL (inter-depository) or from CDSL to CDSL (intra-depository).
Applications of the client master report
There are several uses for the client master report. When you open an account for trading, the brokerage might require a client master report from your DP that serves as proof for mapping your personal information, mobile number, place of residence, and official banking information.
This is necessary if you map the demat account to a trading account with another broker. Additionally, mapping off-market share transfers or shares of specific company categories—such as unlisted shares—is another purpose for the client master report.
CMR is required for unlisted businesses, off-market share transfers, share transfers between DPs, and even share transfers in case of a relative’s death and their transfer of stocks to you. The client master report must provide adequate proof per the regulations in all of these situations.
How to get a client master list?
Depending on the broker, the CMR report may be available for immediate download via the website or mobile application.
While the process may vary from one broker to another, some general steps will allow them to get their report.
- First, sign into your trading and demat accounts.
- Choose the “Service” option.
- You must enter your PAN number, username, and password to access your account.
- Select the tab labelled “My Account.”
- Choose the “CML Copy Request” option from the menu.
- Select “Request CML Copy.”
The CML copy will be sent to the email address associated with the broker immediately after the request has been filed.
You may view and save the CMR demat, also known as the CML demat, online. You can access any of the four documents mentioned above from the online DP interface after you have authenticated yourself by providing your login credentials and second-level verification.
What benefits may you get from a client master report?
The following are some ways that traders and investors might benefit from a client master report or client master list:
- Using a CMR copy, an investor may link their existing demat account to a different or alternative trading account with a different broker.
- It acts as authentication for the demat account holder.
- It avoids confusion and human errors.
- The CMR copy serves as formal proof of the recipient of the securities transfer.
- A CML copy is a must-have document when doing off-market business.
Conclusion
The CMR or CML report has all the information you need about your demat account in one place, making it one of traders’ most essential pieces of documentation. For this reason, the information in the CMR must be filled out correctly and up to date so that records are adequately maintained.
FAQs
CML stands for Client Master List, while CMR stands for Client Master Report. They are both certificates of demat account that contain the details of the client, such as name, DP ID, bank account, contact details, etc. They are used for transferring shares and verifying KYC.
There are three main types of demat accounts in India: regular, repatriable, and non-repatriable. A regular demat account is for resident Indians who trade in all segments of the market. Both repatriable and non-repatriable accounts are for non-resident Indians who want and do not want to transfer funds abroad, respectively.
CML in CDSL is the Client Master List issued by Central Depository Services Limited (CDSL). It is a certificate of demat account that contains the details of the client who has opened a demat account with CDSL.
Yes, you can keep a zero balance in your demat account. There is no minimum balance requirement for a demat account. However, you may have to pay annual maintenance charges (AMC) and other fees to your depository participant for maintaining your demat account.
Yes, you may get a physical copy of your CMR via post. However, for this, you need to request that your demat account service provider send the copy via postal mail. This approach might also cost you additional charges that the digital process will not.