Client Master Report
Also written CMR · Client Master Report (CMR)
The depository-system report of a demat account's recorded details - holders, address, bank, contact and other static data - sent to the client on account opening and used as proof of account details.
In plain language
When a DP opens a demat account, it keys the client's details into the depository system. The Client Master Report (CMR) is the system's printout of what was recorded: who holds the account, in what order, at what address, with which bank account, mobile number, email and so on.
It does two jobs. It lets the client check that the DP captured everything correctly - and see it again whenever something is changed. And it serves as a trusted proof of a demat account's details for other parties: a DP receiving a transfer of all holdings, a registrar processing a demat request, or a DP handling a transmission claim can rely on a certified CMR of the other account.
How it works
Uses of the CMR across the workbook:
On account opening (Chapter 4).
- The system generates a report of client details from the account opening form; the DP gives a copy to the client for reference and verification, and the CMR is sent to the address given in the form.
- NSDL: the CMR and a scanned charge structure go to the client's recorded e-mail; if that fails (including bounced e-mails), in paper form; delivery records are kept.
- CDSL: a system-generated account-opening confirmation letter is sent; alternatively the CMR may be given by e-mail or through the DP's website with secured access; if that fails, a physical or digitally signed copy.
After changes (Chapter 4).
- Where a DP updates a mobile number/e-mail from KYC-complied trading or bank records, it intimates the client by sending the CMR with a request to complete validation.
- After a name change, or correcting a DP's own typographical error in the name, the DP informs the client, including by CMR.
As proof of another account.
- Closing an account and moving all holdings (Chapter 4, section 4.5.5): the client submits a closure request with a certified (signed and stamped) CMR of the target account, or a digitally signed electronic copy. For inter-depository moves, a CMR in crystal format certified by the target DP, or target details certified by the other depository.
- Transmission (Chapter 6): if the claimant's account is with another DP, a copy of the claimant's CMR; for joint holdings, the CMR of the surviving holders' account.
- Dematerialisation (Chapter 7): the CMR or a covering letter, with DRF and certificates, is sent to the correct address of the issuer/RTA.
A worked example
Illustrative.
1. Opening. Harish opens an NSDL account. He receives by e-mail his Client Master Report and the DP's scanned charge structure, and checks every recorded detail - names, address, bank account, mobile number, e-mail - against what he filled in. Had the e-mail bounced, the DP would have had to send them on paper.
2. Moving his holdings. A year later Harish opens a CDSL account with another DP, in exactly the same name, and wants to close the NSDL account.
| He gives his NSDL DP | Why |
|---|---|
| Account closure request, signed | Starts closure and transfer of all holdings |
| CMR of the new CDSL account in crystal format, certified by the CDSL DP (or target details certified by CDSL) | Proves the target account is his, identical in all respects - an inter-depository move |
Because the accounts are identical, the transfer of all holdings qualifies for SEBI's 2006 no-charges treatment.
3. Transmission. Harish's aunt dies; he is her nominee. Her DP is different from his, so with the transmission form and death certificate he submits a copy of his own CMR, so her DP can credit the right account.
4. Name change. Harish's DP corrects a spelling error it made while keying his name, records the reason as "Participant error", and sends him an updated CMR.
Why NISM asks about it
The CMR appears in Chapter 4 (Functions of DP - Account Opening, 12% weightage: account opening, updating contact details, name change, closure and shifting), Chapter 6 (Transmission and Nomination: claimant's and survivors' CMR) and Chapter 7 (Dematerialisation: CMR sent with DRFs). Questions test when the CMR must be given, how NSDL and CDSL deliver it, and which certified CMR is needed for closure-cum-transfer, especially the crystal format for inter-depository moves.
Common exam traps
- The CMR is built from the client details captured from the account opening form - it is the account's master record, not a statement of transactions.
- Given to the client after account opening for verification; again after changes such as name correction.
- NSDL sends it with the charge structure by e-mail, with paper as fallback.
- CDSL may send a confirmation letter, or the CMR by e-mail or secured website, with physical or digitally signed copy as fallback.
- Closure-cum-transfer needs a certified CMR of the target account; crystal format for inter-depository moves.
- Transmission to a claimant with another DP needs the claimant's CMR.
Check yourself
1.To help Issuers / RTAs carry out due diligence on physical demat requests, what must a DP enclose with the DRF and certificates?
- a)A copy of the client's latest income-tax return
- b)An indemnity bond from the DP for every request
- c)A duly certified Client Master Report, or a covering letter generated from the NSDL system or the DP's back-office system containing the client's details
- d)The client's original account opening form
Show the answer
Answer: (c) A duly certified Client Master Report, or a covering letter generated from the NSDL system or the DP's back-office system containing the client's details
Issuers / RTAs asked that DPs forward additional details of the client such as address and contact details, status of the account, type and sub-type of the account, PAN of all the holders and the bank account details captured in the demat account. So DPs enclose: "a. A duly certified Client Master Report (CMR) printed either from the NSDL system or from DPs back-office system; OR b. A covering letter generated from the NSDL system or from DPs back-office system which incorporates the aforesaid details."
- A and D are not asked for.
- B misplaces the Indemnity Bond, which the DP executes only when certificates are lost in transit. It is not a routine enclosure.
The papers go to the "address to which physical certificates to be sent" communicated by the depository, with a forwarding letter quoting the DRN, within seven days of accepting them from the client.
2.What kind of account does a nominee need in order to give effect to the transmission of shares?
- a)Savings account
- b)Demat account
- c)Salary account
- d)Current account
Show the answer
Answer: (b) Demat account
Securities in the depository system move only between demat accounts, so the nominee must have one.
If the Nominee does not have an account with the Depository, the Nominee shall be required to open an account with any Depository.
And if he already has one elsewhere, the transmission proceeds to the account of the Nominee, held with any Depository, as per the Client Master Report, submitted by the nominee, if the nominee has a demat account in individual capacity with another DP.
What the nominee must submit: the nominee(s) shall request the DP in writing along with an original death certificate or a copy of the death certificate duly attested by the nominees or by a Public Notary or by a Gazetted Officer and self-attested copy of the Permanent Account Number (PAN) card of the nominee(s) issued by the Income Tax Department.
The short list, in the workbook's own summary: for transmission of assets to the registered nominee(s), the participant shall require only the following (a) Self-attested copy of Death Certificate of the deceased investor; (b) due completion, updating or reaffirming of the KYC of nominee/s; (c) due discharge from the creditors if there are subsisting credit facilities secured by a duly created pledge.
Three documents where there is a nomination, against a succession certificate or its equivalents where there is none. That difference is the entire practical value of nominating.
And what happens afterwards: regulated entities shall facilitate/extend co-operation to transfer assets from the nominee(s) to the legal heir(s) of an investor, as and when approached by either party.
3.A demat account number consists of:
- a)A 10-digit client ID only
- b)8-digit DP-ID plus 8-digit client account number, 16 digits in all
- c)12-digit ISIN plus 4-digit client code
- d)A 20-character alphanumeric code
Show the answer
Answer: (b) 8-digit DP-ID plus 8-digit client account number, 16 digits in all
In case of CDSL, the account number has two parts, i.e., 8-digit DP-ID (identification number of Depository Participant) and 8-digit client account number. The workbook's example: 13015600 00000082.
Similarly, an account with the NSDL will have 16-digit number with the first 8 digits indicating the DP-ID starting with IN300100 and the last 8 digits giving the client id i.e. 10005678.
Both depositories therefore use 16 characters; the NSDL DP-ID begins with "IN". Together this number is unique across depositories.
Option D describes the LEI — a 20 character alpha numeric code used to identify parties for Large Value Transactions i.e. for value of transaction ₹50 crore and above.
Option C confuses the ISIN, which identifies a security rather than an account.
How the number is generated: on receipt of a valid application form which is complete in all respects and duly signed by the applicant, the DP should verify its contents to his satisfaction. If, after verification, the DP accepts the application and the Rights and Obligations document is signed, the DP has to enter the information on the application form into the depository participant system. The system then generates a client account number which should be referenced by the client for all its transactions.
And what follows: the DP should provide a copy of account opening confirmation report to the client for his reference and verification about the correctness of details, and after opening the demat account, the client master report should be sent to the client at the address given in the account opening form.
One more identifier worth distinguishing: the VID is a 16-digit numeric field which can be used by Aadhaar holder in lieu of his/her Aadhaar number.
Where this is taught
Free preparation for NISM Series VIRelated terms
- DematerialisationConverting securities held as physical certificates into book-entry holdings: the certificates are defaced, mutilated and surrendered to the issuer, and an equivalent quantity is credited to the holder's demat account.
- Depository participantThe SEBI-registered agent through whom an investor reaches a depository — NSDL and CDSL cannot open investor accounts themselves, so every demat account is opened and operated through a DP.
- Inter-depository transferA transfer of securities from an account in one depository (NSDL or CDSL) to an account in the other, possible because SEBI regulations require the two depositories to be inter-connected.
- Mass shifting facilityThe depository facility that lets a DP move a whole group of client accounts from one DP module or location to another in one go - for example when it opens a new centre - without clients re-opening accounts.
- De-statementizationConverting mutual fund units held as a physical Statement of Account into electronic form in a demat account, via a Mutual Fund De-statementization Request Form the DP submits to the AMC or RTA.
- Multilingual CASCDSL's Consolidated Account Statement made available in multiple Indian languages, aimed at wider accessibility for retail investors in rural and semi-urban areas.
- Legal Entity IdentifierA 20-character alphanumeric code that DPs must capture in a non-individual's demat account, under an RBI direction, to identify parties to large-value payment transactions of Rs 50 crore and above.
- Minor correction in nameA limited fix to how a name is written in a demat account — spelling, expansion of initials, or abbreviation — accepted on an ink-signed request and one identity document, and distinct from an actual change of name.
- UCC mappingThe SEBI-mandated linking of a client's trading-member-allotted Unique Client Code to their demat account, so exchanges and depositories can jointly detect diversion of client securities.