What is a Client Master Report or CMR Copy

In the financial world, to receive payments we often need to give a cancelled cheque from Savings or Current accounts. With this, the payer verifies details such as the Name of the party, Bank account number, and IFSC code of the bank branch where the account is held, before setting up payments.

The Client Master Report (CMR) is the same, but for a Demat account. It can be used to verify the holder’s share account details with a DP (Depository Participant). A CMR report is evidence of all details of the investor’s account, which holds the securities (eg. Shares) that he uses for trading.  

The holder of the Shares is also called the Client, Beneficiary, or Investor, at various points.

What is CMR Copy?

The Client Master Report (CRM) is a system-generated report, by the Demat accounting software of the Depository Participant.  Hence it is in PDF form which is not editable. It can be transferred electronically over scans or email. Generally, it does not need to be physically signed by DP officials. Hence it is referred to as a CMR copy, that can be downloaded and shared within the financial community, for a legitimate purpose (eg. Shifting accounts between DPs).  Usually, brokers request a DP's physical or digital signature to ensure that it is an authentic CMR report with correct details. However, share issuing companies request Demat holders to self-certify the scanned or digital copy. This is called self-attestation by the account holder.

What Does CMR Copy Contain?

 

CMR is a ‘Know Your Customer document’ of Demat account, that proves two very important details:

• DP Id and Client Id

• The Bank account from which or to which money will be transferred when shares of the client are traded (Designated or Linked Bank account).

Besides, the CMR also gives much other important information about the investor, like these:

• Personal details of the investor such as Name, Address, Date of Birth, and contact details to identify the holder and communicate with him

• It proves that the Demat account is Active (in use) and can be used without a problem. This is called ‘Status’ of the account’

• It defines the Client type (Resident or Non-Resident) which is called the Beneficial Owner (BO) Status. This is important as NRI Demat accounts have specific rules relating to the repatriation of funds out of India, which must be followed strictly

• It has a record of the PAN number of the holder, which makes any share buy/sell, tax compliant

• It further shows Nomination details (if any registered by Holder). This is needed for share transfers if an account is closed when the holder dies.

Looking at these vital data on CMR, everyone can see that it is the most important certificate required when requesting any changes to Demat accounts (called Service requests). CMR meaning can be fully understood, by the above description. 

Why CMR Copy is So Important?

DPs and Brokers have many responsibilities which are legally binding. Of these, the most important duties are:

• Brokers need to make sure that the shares are credited to and debited from the correct Client Id

• They also need to ensure that the money for shares sold or bought is going to the holder’s designated account, mentioned on the CMR.

How to Get CMR Copies From Other Stock Brokers?

In the case of share transfers, brokers holding Demat accounts of the beneficiary are required to issue a CMR, to ensure timely credit. It also ensures that there is no error or miscommunication in filling in Demat account details.

For the issue of a CMR, the Demat account holder can place a service request with his DP broker via email, mobile app, or even a written, signed request. On receipt of this request, the DP issues a CMR or CMR copy digitally and sends it by email to the account holder. Alternatively, a CMR copy can also be downloaded via the internet or mobile account login.

When CMR copy is Required?

Whenever shares are transferred from one Demat account to another, a CMR copy of receiving DP is required.

A large section of the Capital market consists of shares that are not listed by issuing companies, on any Stock Exchange. These non-listed stocks are usually traded by Stockbrokers through a process called Over-The-Counter or OTC trade. In such buy/sell transactions, Brokers serve as intermediaries. Their job is to negotiate prices in the market and give the buyer/seller a quote called a Bid-Ask price or Two-way quote. In such OTC transactions, brokers will request for the CMR copy issued by the DP to receive credit. 

Sometimes, investors open a Share Trading account with brokers, who are different from their DP. For eg., An Investor may have a Demat account with Axis Securities Ltd. and open a share trading account with a broker, say, Enrich Money. In such cases, Enrich would request a CMR copy from Axis, to verify the account credit of shares.

Other instances where CMR copies would be required could be when there are off-market settlements taking place (not through Clearing Corporation of an Exchange). Here the receiving DP issues a CMR to ensure correct credit. 

Difference Between CMR Copy and Client Master Report?

The DP issued the Client Master Report with whom the Demat account holder has his Demat account. It is a standard certificate giving all key details of the Demat and linked Bank accounts. It is available in pdf format. Thus, it is easy to transmit, as an attachment via registered email.

CMR Copy is in the same format as the Client Master Report and can be downloaded whenever needed, by the Demat account holder through his online login feature. The CMR is then routed to the registered email id of the account holder.

How Can I Get a CMR Copy at Enrich Money

Any customer who maintains his or her Demat account with Enrich Money can download their CMR copy by logging into their Demat account, opting for the Services dropdown where they can find ‘Download CMR copy’ as an option via registered Email id. This process is instantaneous and the Demat account holder will receive their CMR copy in their email inbox.