Demat Shares Missing or Wrongly Pledged? How to Complain to CDSL, NSDL and SEBI

Who this guide is for

This guide is for retail investors in India who have one or more demat accounts with a depository participant (DP) — typically a stockbroker or bank — registered with either CDSL (Central Depository Services (India) Limited) or NSDL (National Securities Depository Limited). You will find this guide useful if:

• You bought shares on the stock exchange but they have not appeared in your demat account even after the settlement period.
• Your CAS or demat statement shows a pledge balance you did not authorise — meaning your broker may have pledged your shares as collateral, possibly for their own margin requirements.
• Shares have disappeared from your demat account entirely and you suspect an unauthorised off-market transfer.
• You received an OTP for a pledge instruction but you did not initiate it, and you want to act quickly.
• Your broker has become insolvent or has been suspended by SEBI, and you need to recover your holdings.

This guide does not cover commodity futures, currency derivatives, or physical share certificates. For mutual fund redemption problems, see the related guide on mutual fund redemption or nominee claim that is stuck. For broader investor fraud involving fake demat accounts, see the guide on fake demat account fraud in India.

What you can do this weekend

Friday evening

Do not wait. Collect your demat account credentials and your PAN card. Log into your broker's platform and download your demat transaction statement for the last three months and your broker ledger or funds statement for the same period. Note any entries labelled as "pledge," "margin pledge," "re-pledge," "lien," or "off-market transfer" that you do not recognise. Screenshot or save these as PDF files — you will need them as evidence.

If shares are completely missing and you suspect an unauthorised transfer has already happened, call your broker's customer care immediately and ask them to freeze your demat account as a precaution. Confirm this in writing by email to their compliance officer the same evening.

Saturday

Access your Consolidated Account Statement (CAS). The CAS is issued jointly by CDSL and NSDL and gives you a single picture of all your demat holdings across both depositories. You can download it from:

• CDSL CAS portal: Go to cdslindia.com, click "Login" at the top right, choose "CAS/Declare Bonafide," and enter your PAN, BO ID, and date of birth.
• NSDL CAS portal: Go to nsdl.co.in/nsdlcas and enter your PAN and registered email or date of birth.

In the CAS, look at your holdings table carefully. Each security will show columns for Free Balance (available for sale), Pledge Balance (locked as collateral), and Lien Balance (locked for other reasons). If shares are sitting in the Pledge Balance column but you never gave a pledge instruction, that is a potential unauthorised pledge.

Compare the CAS with your broker ledger. Any discrepancy between what the depository records and what the broker shows in your account needs a written explanation from the broker.

Draft a complaint email to your broker's compliance officer (Saturday afternoon gives you time to write clearly). Keep the tone factual: describe the discrepancy, attach the CAS extract and ledger, and ask for a written response within a specific number of business days.

Sunday

Register on SEBI SCORES at scores.sebi.gov.in using your PAN, mobile number, and email ID. Even if you are still waiting for the broker to respond, register in advance so you are ready to file the formal complaint if needed. Familiarise yourself with the complaint categories: "Demat Account" and "Stock Brokers" are the two most relevant.

Also bookmark Smart ODR at smartodr.in and the SEBI toll-free helpline numbers (1800 266 7575 and 1800 22 7575, available 9 am to 6 pm on working days) in case you need to escalate quickly in the week ahead.

If you suspect fraud — not just a dispute — you can also consider filing a police complaint (cyber crime cell or local station) in parallel, particularly if shares have been transferred out and sold. Keep the SCORES and police tracks running simultaneously.

Documents and evidence checklist

Step-by-step action plan

Step 1: Understand pledge versus unauthorised transfer

Before acting, be clear about what has happened to your shares, because the remedies differ slightly.

A pledge keeps your shares in your own demat account but places them in a "locked" state. The shares remain yours; you just cannot sell or transfer them until the pledge is released. Under SEBI rules introduced in 2020, creating a margin pledge requires an OTP sent directly to your registered mobile number or email by the depository — not just by your broker. If shares are in the Pledge Balance column and you never received or confirmed such an OTP, the pledge is likely unauthorised.

An unauthorised transfer is more serious: the shares have moved out of your account entirely into another demat account, usually through an off-market transfer instruction. This would show as a debit entry in your demat transaction statement without a corresponding sale on the exchange. Act faster in this case — ask the depository to freeze your account immediately.

Step 2: Verify via CAS and broker ledger

Download both your CAS (from CDSL or NSDL) and your broker's demat transaction statement. Line them up side by side. The CAS is the authoritative record from the depository, so any difference from what the broker shows is something you need to flag in writing to the broker.

For CDSL account holders, you can also use CDSL easi (Electronic Access to Securities Information) and its advanced version CDSL Easiest for real-time viewing and limited transaction capability. For NSDL account holders, the equivalent portal is NSDL IDeAS. Both are free services. Register through the respective depository websites using your account credentials.

Step 3: Write a formal complaint to your broker

Email your broker's compliance officer (the email address should be in their website's "Investor Charter" or "Contact Us" section, as SEBI requires all registered intermediaries to publish it). Your email should:

• State the specific shares affected (ISIN, company name, quantity, and demat account number).
• Describe the discrepancy (shares missing after T+1, or pledge balance you did not authorise).
• Attach your CAS extract and demat transaction statement as evidence.
• Ask for a written explanation and resolution within a clear deadline.
• Request that all actions on your account be placed on hold pending resolution if shares are at risk of further movement.

Keep a copy of the sent email with timestamp. If the broker communicates only by phone, follow up with an email summarising what was discussed.

Step 4: Escalate to CDSL or NSDL

If your broker fails to respond or gives an unsatisfactory explanation, escalate to the depository. Your broker is registered as a Depository Participant (DP) with either CDSL or NSDL. The depository can investigate at the account level and, in serious cases, direct the DP to take corrective action.

For CDSL: File through the CDSL investor grievance portal at cdslindia.com (look for "Investor Grievance" in the Investor Services section). CDSL's complaint process is: registration and acknowledgement in the first few days, forwarding to the DP, DP investigation, CDSL review, and resolution communication. If not resolved in 30 days, CDSL's Grievance Redressal Committee (GRC) can take it up. There is no fee to file.

For NSDL: File at investor.nsdl.com or use the complaint link on the NSDL website. NSDL's helpline number is 022-48867000. If not resolved in 30 days, you can refer the case to NSDL's GRC. There is no fee.

Step 5: File on SEBI SCORES

SEBI SCORES (scores.sebi.gov.in) is the central online grievance platform for all securities market complaints. You can file a complaint against your broker (a SEBI-registered intermediary) or your DP here. The old version of SCORES was closed in March 2024; use the current portal at scores.sebi.gov.in or the SCORES mobile app.

To file:

• Register with your PAN, mobile number, and email (OTP-based verification).
• Choose the complaint category: "Stock Brokers / Sub-Brokers" or "Depository Participants."
• Describe the issue clearly, specifying the shares, dates, and amounts involved.
• Upload your evidence: CAS, transaction statements, prior complaint emails, and broker responses.
• Submit — you will get a complaint registration number.

The entity (broker or DP) must submit an Action Taken Report (ATR) within 21 calendar days. If you are not satisfied with the ATR, you have 15 calendar days to request a first-level review by the designated body. If still unsatisfied, you can request a second-level review by SEBI. SEBI's toll-free helpline is 1800 266 7575 or 1800 22 7575 (9 am to 6 pm). Email for technical support: [email protected].

Step 6: Pursue Smart ODR for a binding resolution

If SCORES does not give you a satisfactory outcome, or if you want a legally binding arbitral award rather than just a regulatory direction, use Smart ODR (smartodr.in). SEBI's Smart ODR platform provides online conciliation and arbitration between investors and market intermediaries. Proceedings are conducted digitally — no physical travel needed.

The process: file your dispute on the portal; a neutral conciliator attempts to mediate a settlement. If conciliation fails, the case goes to online arbitration where an accredited arbitrator conducts virtual hearings and issues a binding digital award. Smart ODR covers disputes between retail investors and listed companies, brokers, and other SEBI-regulated intermediaries, making it well-suited for demat account disputes.

See also the guide on filing a banking ombudsman complaint if the same issue also involves a bank-based DP, and the guide on CPGRAMS for public sector grievances if a government entity is involved.

Escalation ladder

Copy-paste complaint template

Replace the text in square brackets with your own details before sending.

When RTI can help

SEBI (Securities and Exchange Board of India) is a public authority under the Right to Information Act, 2005. This means you can file an RTI application with SEBI to obtain information held in SEBI's own records. Situations where RTI with SEBI is genuinely useful include:

• Seeking copies of inspection or examination reports on your broker that SEBI may have conducted, if those reports are not exempt.
• Asking whether SEBI has initiated any enforcement action or show-cause notice against your broker or DP, and the status of such proceedings.
• Obtaining SEBI's correspondence with your broker about a particular issue, subject to exemptions for commercially sensitive or third-party information.
• Verifying your broker's or DP's registration status, licence validity, and whether any conditions have been imposed — though much of this is also available on SEBI's website directly.

File an RTI with SEBI online at rtionline.gov.in or by post to the CPIO, SEBI Bhavan II, Bandra Kurla Complex, Mumbai 400 051. The application fee is Rs. 10. See our guide on how to file an RTI online for a step-by-step walkthrough.

To understand what to do if your RTI application is refused or not answered, read the guide on filing a first appeal under Section 19. For broader context on using RTI as a citizen tool, the RTI Playbook is a practical reference.

When RTI will not help

RTI applies only to public authorities — government bodies and entities substantially financed by government funds. RTI does not apply to:

• Your stockbroker: Brokers are private entities registered with SEBI. You cannot file an RTI with your broker demanding information about your account or their internal operations. Use SCORES or the broker's own grievance mechanism instead.
• CDSL or NSDL: Both depositories are set up as companies under the Depositories Act, 1996, and function as private-sector market infrastructure institutions. They are regulated by SEBI but are not government bodies. The Central Information Commission has expressed doubt about treating NSDL as a public authority under RTI. Use the depositories' own investor grievance portals and escalation mechanisms.
• NSE or BSE: Stock exchanges are not public authorities under RTI. File exchange-related complaints through the exchange's investor grievance mechanisms.
• Private sector companies whose shares you hold: You cannot use RTI to compel a private listed company to explain corporate actions, dividends, or share transfers.

The right forums for broker and depository grievances are the depository's complaint portals and SEBI SCORES, as outlined in the escalation ladder above. For a related investment grievance scenario, also see our guide on fake mutual fund advisor scams in India.

Common mistakes to avoid

• Only calling, never writing: Phone calls leave no record. Always follow up any verbal communication with an email. Your written complaint record is essential when you escalate to SCORES.
• Waiting too long before acting: If shares have been pledged or transferred out, the longer you wait, the harder it is to trace proceeds. Act the same day you discover the discrepancy.
• Sharing your OTP with your broker: SEBI's pledge framework sends the OTP directly to your registered mobile or email from the depository. You should never share this OTP with your broker or anyone else. If someone calls claiming to be your broker and asks for a "pledge OTP," refuse and report it immediately.
• Confusing pledge with sale: A pledge does not generate sale proceeds. If your broker claims shares were pledged for your margin, but you also see sale credits in your account, demand a complete reconciliation statement.
• Filing only an informal grievance on SCORES without prior written complaint to broker: SCORES requires you to have first raised the issue with the intermediary. Without a prior broker-level complaint, the SCORES process may be delayed.
• Signing a broad POA without reading it: Since September 2022, DDPI has replaced the broad Power of Attorney. If you signed an older POA before that date, it may still grant your broker wide powers. Review your account-opening documents and, if in doubt, ask your DP to replace the POA with a DDPI.
• Not checking the CAS regularly: SEBI advises investors to check their CAS monthly. Many pledge and transfer frauds are discovered only after months, by which time recovery is difficult.
• Filing RTI with CDSL, NSDL, or your broker: These entities are not covered by the RTI Act. Filing an RTI with them will not get you anywhere. Use their own grievance portals and SCORES instead.