Summary

There are various documents that are required in the buying and selling of unlisted shares, one such document is the Client Master Report. So if you are curious as to what a Client Master Report is and why it is important, we will give you a complete insight on it. You will see why its one of the most crucial documents a trader needs by the end of this article.

What is a Client Master Report?

Client Master Report also known as CMR copy is a system-generated document that contains all the information on the client who has created a Demat account with brokers in India. Let’s take up a common example:

In our everyday life, when we make payments to someone unknown, we often ask for a cancelled cheque from their savings or current account in order to make payments.We use this information to confirm the party's name, bank account number, and IFSC code of the bank branch where the account is housed etc.

For a Demat account, the Client Master Report (CMR) is the same. It can be used to check the information on the holder's share account with a Depository Participant. A CMR report serves as proof of every aspect of the investor's account, which is where the shares that they trade in are held. It is a type of client master list that attests to the validity, certification, and verification of the papers you provided when starting the demat account. This document is legitimate legally and is required in a number of locations especially while trading in the unlisted market..

How does CMR Copy Help Investors?

A CMR copy is as beneficial for the investor as it is for the trader or broker. As an investor following are the ways a CMR copy helps you:

• It is a valid proof or certificate for your Demat account
• It can be used to connect your previous or current Demat account to a new or different trading account with any other broker.
• It helps in providing unified data that will make off-market transfers such as trading in unlisted shares hassle-free for you.
• It acts as a legal document for where you plan to transfer your securities.
• A CMR copy eliminates the chances of manual mistakes and makes sure that there are no misunderstandings.

Who provides CMR copy?

You can easily get your CMR copy in just a few steps. The client or the investor only needs to send an email to the broker with whom they have a Demat account in order to obtain a PDF copy of the Customer Master Report or CMR Copy.

You can access and download the CMR demat—or CML demat, as they are more often known online as well. This can be done through the mobile app or by logging into your trading account from your browser. The online DP interface will allow you to download it using any four of these documents i.e. proof of address, proof of PAN, proof of photograph or proof of signature. Once you have authenticated yourself by giving your user name, password. The client master report that you expressly request will be sent to your registered email address immediately.

What Does a CMR Entail?

A Client master report contains a lot of details, following are some of the information that can be seen on it:

• Depository Participant ID - You will receive a special number from either Central Depository Securities Limited (CDSL) or National Securities Depository Limited (NSDL), which is called a DP ID.
• Client ID - This special identifying number will be provided to you by your broker.
• Account Status - Your account's status reveals whether or not it is active.
• Account Opening and Closing Date - This contains the date of opening the account and the date your account is formally shut down. The closing date would be mentioned only if your account is closed.
• BO Status and sub status - It informs us if you have an account opened as a corporation, trust, HUF, individual, etc. and the sub status indicates whether you are an individual, resident or an NRI.
• Freeze Status - A freeze of an account is a regulatory or legal authority's action that halts any transactions in the account.
• Personal Information - It includes all of the private information you provided such as name of the primary holder, PAN card number, birth date, details of additional holders, address for correspondence by occupation, Permanent Address and more.
• Bank Information - All of the bank information associated with your Demat account would be shown under this.
• Nominee Information - A nominee is a person who has the right to receive the inheritance in the event of unfavourable events. You will see information like the nominee's name and address etc.
• Power of Attorney Details - It is a legal document that enables you to designate a representative. In general, brokers are authorised to act on your behalf since you have given them permission to do so in order to ease share fluctuations.