Broker ledger mismatch: reconcile it, then make the broker prove it

Reviewed on: 2026-06-12.

Start with a real-shape example. Suresh sold 200 shares of an auto stock at Rs 312 on a Tuesday. His contract note shows a net sale credit of Rs 62,108 after brokerage, STT and charges. Two days later his broker ledger shows a credit of only Rs 57,448. The difference, Rs 4,660, appears as two unexplained lines: “DP and other charges” of Rs 660 and an “adjustment” of Rs 4,000. His demat statement separately shows 50 shares of another company moved out through an off-market debit he never signed. Each of these is a different problem with a different fix, and the way to untangle them is the same three-record reconciliation every exchange and SEBI forum will ask for.

1. Contract notes. The legal record of every trade, with quantity, price and itemised charges. The broker must send one within 24 hours of trade day. These are your anchor; the ledger must follow them.
2. Broker ledger (funds statement). Every debit and credit in your trading account: trade settlements, charges, payouts, interest, adjustments. Download it from the broker's back office for the full period, not just the month in question.
3. Demat holding and transaction statement. What you actually own, held at NSDL or CDSL, visible in the depository's own apps (IDeAS, Easi) and the monthly consolidated account statement. This record is independent of the broker, which is why it matters.

Lay the three side by side. A genuine mismatch falls into one of these buckets: charges in the ledger that are not on any contract note, a trade in the ledger that you never placed, a payout shown as made that never reached your bank, shares missing from demat against no sale, or a pledge or off-market entry you did not authorise.

Before alleging fraud, eliminate the boring causes. Quarterly account maintenance charges and DP transaction fees often post to the trading ledger without a contract note. A buy that failed margin checks may show a debit and a reversal. Shares bought yesterday sit in transit until settlement and show in demat a day later. And under SEBI's running account settlement rules, brokers must return unused funds to your bank account periodically, on the first Friday of the quarter (or monthly if you opted for that), so a sudden “missing” balance in the ledger may simply be a settlement payout. Check your bank statement for that credit and the “retention statement” the broker must send with each settlement.

Email the broker's support and compliance officer (every broker publishes the compliance officer's email on its website and on the contract note itself). Attach your reconciliation and ask for a line-by-line explanation with documents within 15 days. Be specific.

To: Compliance Officer, [Broker name]
Subject: Ledger reconciliation dispute, client code [code]

Sir/Madam,

1. My ledger for the period [dates] does not match my contract notes
   and demat statements. The disputed entries are:
   a) [date] debit Rs [amount] described as [narration]: no contract
      note or authorisation exists for this entry.
   b) [date] off-market debit of [qty] shares of [scrip] from my demat:
      no delivery instruction or eDIS was given by me.

2. Please provide, within 15 days: the contract notes or vouchers
   supporting each entry, my running account settlement and retention
   statements for the period, and reversal of entries that cannot be
   supported.

3. If unresolved, I will escalate to [NSE/BSE] and SEBI SCORES.

Name, client code, PAN, date.

Off-market or unauthorised demat movements deserve a parallel complaint to the depository participant and, if fraud is suspected, to cybercrime.gov.in. Do not delay this part; speed matters when securities have moved.

1. Broker compliance officer: 15 days with your reconciliation. Most billing-type mismatches end here.
2. Stock exchange investor grievance: file with NSE or BSE (electronic complaint on the exchange investor service portal) against the broker. The exchange seeks the broker's reply, and unresolved money claims go before the Investor Grievance Redressal Committee (IGRC), which hears both sides and can determine an admissible claim.
3. SEBI SCORES: lodge at scores.sebi.gov.in in parallel or after the exchange route. The broker must file an action taken report within 21 days under SCORES 2.0.
4. SMART ODR: if the IGRC outcome does not satisfy either side, the matter proceeds to online conciliation and then arbitration through smartodr.in, the securities market ODR portal. Awards are enforceable.
5. Broker default scenario: if the broker stops responding, freezes withdrawals, or is declared a defaulter by the exchange, file your claim with the exchange's Investor Protection Fund quickly. IPF claims have strict cut-off dates announced per defaulter, and your reconciliation file becomes the claim's backbone.

Move what you can. Withdraw free funds, and if trust is broken, transfer holdings to a demat account with another DP using your own delivery instructions. Keep trading records, emails and the broker's replies in one folder. Check your registered email and mobile on the exchange records, because brokers facing complaints sometimes “update” contact details; the exchange portal lets you verify what is registered against your client code.

Brokers, depositories and exchanges are private or quasi-private bodies outside RTI. SEBI is a public authority, so once a SCORES complaint is filed you may use RTI to SEBI's CPIO for the status and action taken on your complaint number, useful when a complaint is closed without explanation. RTI cannot make a broker correct a ledger. See how to file RTI online for drafting basics.

• Bonus shares not credited to demat
• Bank refuses details of a share lien order
• Bank refuses to register a transaction dispute
• Unknown dues hitting your credit report

The full index is at all practical guides.

Brokers can charge interest on margin shortfalls or debit balances if your account agreement provides for it, but the charge must be computable and disclosed. Ask for the calculation and the clause. Arbitrary round-figure “adjustments” are challengeable.

Ask the broker for the UTR of the transfer and check the destination account. If the UTR does not exist or the money went elsewhere, escalate the same week to the exchange and SCORES, and alert your bank.

Demand the order logs, including the IP address, terminal ID and call recordings if it was a dealer-assisted account. Unauthorised trading is a serious violation; complain to the exchange even if the broker offers to “settle” informally.

Reconcile at least the current and previous financial year. Forums weigh delay against you, and arbitration claims have limitation linked to when the dispute arose, so act within months, not years.

The IGRC determines the admissible claim and the exchange can direct a deposit, but either side can take the matter to ODR arbitration. The arbitration award is binding, subject to challenge under arbitration law.

Reduce exposure. Keep only the minimum funds needed, withdraw the rest at each settlement, and consider shifting your demat to an independent DP so the dispute cannot touch your holdings.

Download the broker ledger reconciliation checklist (PDF).