A ledger is a collection of all the financial accounts of a company, establishment, individual or other entities. It is a record of all financial transactions and keeps note of all inflow and outflow of cash. When an individual starts trading in the stock market, a ledger of their payments received is maintained. This ledger lists on a running basis any funds received upon the sale of securities, trading charges incurred, payments made for shares bought, and other transactions.

Each time a transaction is recorded, it is accompanied by a description – ledger narration. Ledger narration is a short snippet of text that describes each transaction so that investors can understand the background of the same.  Generally, common ledger entries can be categorized as under —

Depository Participant-related

Ledger entries that are largely concerned with charges collected by an investor’s depository participant (DP) are accompanied by these narrations. These charges could be levied on the sale or transfer of a security, or include account maintenance charges (AMC), dematerialisation and rematerialisation charges, etc

Entry narration What it means
Charges for On-MKT Transaction for BOID : 1234567891234567 Dt : Jan 01 2021 This charge is levied whenever you sell a holding from your Demat account
Charges for Off-MKT Transaction for BOID : 1234567891234567 Dt : Jan 01 2021 This charge is levied whenever you transfer a holding from one Demat account to another
Demat Monthly Maintenance Charges for BOID : 1234567891234567 Dt : Jan 01 2021 These are Demat account maintenance charges and are billed monthly
Charges for Pledge/Unpledge of Securities for BOID : 1234567891234567 Dt : Jan 01 2021 – Pledging is when you use your stocks as collateral to increase your margin and, in turn, your trading potential

– Unpledging is when you release your stocks from collateral. This will in turn reduce your available margin.

– These charges are levied when you raise a request for  margin or avail margin trade funding

– Pledge charges and unpledge charges are charged separately.

DP Charges for Sell Transaction from Holding Dt : Jan 01 2021 This charge is applicable when your holdings are sold from the CUSA account (Client Unpaid Securities Account)
Demat/Remat Charges – Demat (dematerialisation) is when you convert existing physical share certificates into electronic format

– Remat (rematerialisation) is when you convert electronically held securities into physical certificates

– These charges are levied if you avail of either of these services

– Demat charges and remat charges are charged separately

Dividend on 10 Shares of scrip ABC LTD @ 5 (7.5% TDS DEDUCTED) Dividend payments will reflect in your ledger (after TDS) if the dividend is accrued on your shares lying in your CUSA account.

Pay-in and payout-related

These narrations refer to the investor’s account-funding activities, including the opening balance, amount withdrawn, amount received, etc.

Entry narration What it means
Opening Balance This amount refers to the opening amount available in your ledger (or account) for the day
Amount Received Funds added to your trading ledger from your bank account
Amount Withdrawal Withdrawal of funds from your trading ledger to your bank account
JV intersegment transfer Internal movement of funds across segments

Accounting-related

These describe accounting and financial adjustments. These entries include account opening and closing charges, as well as rounding-off and writing-off charges.

Entry narration What it means
Account Opening Charges Demat account opening charges
Account Closure Demat account closing charges
Rounding Off The adjustment made to bring the total to the nearest rupee
Write Off This refers to any transaction or balances whose value has been brought down to zero

Entries related to Margin Trading Facility (MTF)

Margin Trading Facility (MTF) allows an investor to buy a stock by paying just a fraction of the total transaction value. The balance amount is funded by Angel Broking. Ledger Narrations related to MTF will feature in the report of only those clients who have availed this facility.

Entry narration What it means
MTF JV from Cash Segment This entry refers to your MTF transactions.

– If the entry is +ve : it means that your trade limit has been increased under MTF

– If the entry is –ve : it means that your MTF loan has been recovered from your account balance

Interest @ 18.00% for the Period 01/06/2021 to 15/06/2021 This refers to the interest charged on the outstanding amount.

This charge will be billed fortnightly.

Risk management related entries

These entries include risk management measures like Additional Surveillance Measure (ASM) and Graded Surveillance Measure (GSM).

Entry narration What it means
ASM Margin Bill – Additional Surveillance Measure (ASM) is a part of investor protection initiatives introduced by the Securities and Exchange Board of India (SEBI).

– This additional levy is applicable on select securities considered to have risk concerns. Parameters such as – price variation, PE Ratio, market capitalization, volatility, etc.- are considered while shortlisting such securities.

– ASM Margin Bill is the levy of the Additional Margin needed to trade in these securities.

– Post exchange review, ASM Margin will be reversed on a quarterly basis and it may be extended further.

GSM Margin Bill – Graded Surveillance Measure (GSM) is another initiative introduced by SEBI to safeguard investor interest. GSM allows for enhanced monitoring and surveillance actions on certain identified securities. For more on GSM, Read This!

– GSM Margin Bill is the levy of the Additional Margin needed to trade in these securities.

ASM Margin Bill Reversal This refers to the reversal of any previously billed ASM Margin.
GSM Margin Bill Reversal This refers to the reversal of any previously billed GSM Margin

Settlement-related

These entries refer to various settlement-related activities and may include charges for activities like requesting contract note dispatch and participation in buyback of shares or OFS .

Entry narration What it means
Charges for contract note dispatch 01/06/2020 In case you have requested a physical contract note, this is the charge for dispatching the same
Auction Bill This entry will reflect in your ledger if you are short on delivery of shares sold
Funds debited towards Buyback of ABC LTD.(Settl.- 1234567 against credited by RTA in Your bank a/c) – In case you have participated in the buyback, shares will be debited from your Demat account and your bank account will be credited with the respective funds. This is done by the RTA.

– The charges in your ledger refer to only statutory levies involved in the Buyback process

OFS Bill This entry will reflect in your ledger if you have participated in any Offer for Sale (OFS)
Transaction Bills This entry refers to the shares/positions traded for the day

– Credit: This entry covers sell trades/profit for a particular day. It will reflect the amount credited to your account.

– Debit: This entry covers buy trades/loss for a particular day. It will reflect the amount debited from your account.

– In case you have done both types of trades on the same day, the net bill amount will be posted in your account (either debit or credit)

Margin-related ledger entries

Interests charged on the amount outstanding and margin shortfall penalties are some of the common margin-related ledger entries.

Entry narration What it means
Charges on Delayed [email protected] 18.00% for the Period 16/03/2021 to 31/03/2021 This refers to the interest charged on the outstanding amount. This charge is billed fortnightly.
Margin Shortage Penalty – Jan 1, 2021 Margin shortage (or shortfall) penalty is levied when you place a trade without sufficient margin.

Miscellaneous

Other ledger narrations include a variety of charges, subscriptions or transactions such as – Angel Broking’s call and trade facility, and payments levied for legal action and arbitration activities.

Entry narration What it means
Being Amount Transferred To A123456_Platinum_789123 Subscription charges for Angel Platinum – our premium advisory service
Charges for Call & Trade-Traded on 1-Jan-21 These are charges for using our call & trade facility which allows you to trade over a phone call.

They may also cover charges for the Auto Square-off facility.

– Auto Square-off charges are levied if your open positions are auto squared-off by Angel Broking. To avoid auto square-off charges, make sure to square-off your positions within the necessary timeline.

– Some examples of auto square-off scenarios:

– Intra-day Square-off

– Risk Square-off

– Projected Risk Square-off

– Ageing Debit-based Square-off

– MTF Shortfall Square-off

For more details on square-off, Read our Risk Management Policy

Legal or Arbitration Charges This includes recovery or levy of any charges incurred for legal action or for arbitration activity.

Conclusion

The purpose of ledger narration is to assist you, the investor, in navigating your trading activities with ease. This glossary aims to provide you with a more simplistic understanding of the common terms found in your Angel Broking Ledger Report.