The Client Master Report is a report that is used by an investment bank to give their clients an overview of their portfolio. The report includes the trading activity for the client, any changes in the portfolio, and any other important information, including their sales and revenue, which may have been missed or forgotten. This report is usually created by an accounting firm or financial consultant. The use of this report in the share market can be to provide potential investors with more information on the company they are interested in investing in. Stockbrokers help people who open Demat accounts with them by providing a client master report. They also provide information about the stocks and give advice on what should be done in different scenarios.

Understanding CMR Report

Client master reports, also known as CMR copies, are PDF documents that include all of the information about a client who has created a Demat account with a broker in India. Client master reports, also known as CMR copies, are the most frequently requested documents while conducting trades in the unlisted market. Find it very difficult to complete any deal without this document. Brokers execute the transaction; they must also have a copy of the customer master report.

How can you get the CMR Copy?

The client only needs to send an email to the appropriate broker with whom they have opened a Demat account in order to obtain the Client Master Report or CMR Copy in PDF format. The Client Master Report can be downloaded from some brokers. Brokers utilise the client master report, or CMR Copy, to confirm two things immediately from the mobile application.

• To understand which bank account the money is coming from.
• To be aware of the Demat account to which the shares are being transferred.

Why are the two aforementioned factors significant?

Transactions with third parties are prohibited by SEBI regulations. To put it another way, if a client wishes to purchase a share, they must transfer money from their bank account and not a third party’s account. Additionally, once brokers have received the funds, they will only transfer shares in the name of the source of the funds and not to the identities of third parties.

• It is unethical to transfer money from the “X” account while crediting the “Y” account with shares.
• Client master copy enables brokers to confirm each transaction in accordance with SEBI regulations.
• The document via which we can learn everything there is to know about a client who has created a Demat account is the client master report, also known as the CMR copy.

The very important client master report elements.

• A broker’s DP ID, which consists of eight numbers, can be obtained from NSDL or CDSL.
• Client ID is an eight-digit ID that serves as the client’s sole means of identification. A broker gives each client this exclusive number, which is a representation of their portfolio. The Demat Account is defined as DP ID plus Client ID. The first “8” digits are the Depository ID, and the following 8 digits are the Client Id if the broker is authorised with CDSL. If the broker is licensed with NSDL, the client ID is represented by the following eight numbers after the first two letters, which begin with “IN” and “6” for the broker.
• Client Status: Active or Inactive. We can tell whether a client is active or not just by looking at their status. According to a recent SEBI circular, an account becomes inactive if the client does not conduct any transactions for a period of one year. Ask the client to activate the account if it is inactive before moving shares off-market. Also, check whether the client is an Indian resident or not.
• Name of Account Holder, Bank Account Information, PAN Information, and Communication Address We can examine every aspect of the client from the client master report. 

Are the accounts holders—single or joint—in each case? What is the client’s PAN number? What information about the bank? As previously noted, third-party transfers are prohibited by SEBI laws. Consequently, merely by looking at the bank information in the CMR. We can confirm that we are only getting funds from the client’s bank account and not from any other sources.

• Contact information for the broker: Clients may view the address information and phone number for the broker on their client master report or CMR copy. This is useful in the event that a trader seeks if they open an account on a Demat app and requires assistance from the broker to fix a problem.