Understanding Share Transactions: Why Shares May Not Appear in Your Account

When you decide to buy shares, you're essentially sending a purchase order. However, if there's no corresponding sell order at the same price, the transaction won't go through. This means that your order to buy shares will not be fulfilled, as other investors are not willing to sell at the price you offered.

Following the execution of a buy order, the shares you#39;ve purchased may not immediately appear in your account.

Transaction Settlement

Shares typically appear in your demat account (Dematerialized Account) two business days after the transaction is completed. This is also known as T 2 (T plus 2 days). All transactions facilitated by the exchange are first sent to clearing houses or depositary participants such as CDSL or NSDL, who hold shares in a dematerialized, electronic form. Your broker generally updates your account the following day, showing the new holdings under positions. However, it is essential to understand that the actual settlement of the trade will take T 2 business days.

Common Issues and Their Solutions

There are several scenarios where you might not see the shares you've purchased:

Power of Attorney (PoA) Not Updated: If you haven't provided your broker with the signed power of attorney, you won't be able to see or sell the shares. A PoA is a legal document that authorizes your broker to debit shares from your DEMAT account whenever you sell them. Trade-to-Trade Scenario: If you sell a stock and immediately repurchase it on the same day, the shares might not appear in your holdings until after the settlement period, which is T 2 days.

Checking and Reporting Issues

Shortly after a transaction, you can use the demat account terminal to check for the reflected shares. If the shares still aren't showing after two days, you should contact CDSL or NSDL through their login portal to cross-check your ledger. Additionally, if the purchase transaction has been executed, you can report to your broker.

It's also important to contact your broker if you found that the shares are not showing in your holding even after the T 2 period. They can provide you with further assistance or insights into any pending transactions.

Conclusion

Investing in the stock market can be intricate, and understanding the processes involved can help avoid unnecessary anxieties. By familiarizing yourself with these common issues and knowing what to do, you can ensure that your transactions are handled smoothly and transparently. Always remain in communication with your broker, especially for issues related to transaction updates and settlements.