What are the implications of having a dormant demat account, and how can one prevent or reactivate it?

Answered on : 2024-01-24

Sources

Your demat account will become inactive when this happens

m.economictimes.com

1

Your demat account will become inactive if you don't do ...

m.economictimes.com

2

Investors struggle with SEBI's dormant account norms

thehindubusinessline.com

3

view 7 more

1. **Dormant Demat Account Implications:**

- Inactivity for a specific period, like 12 months, can classify a demat account as dormant[3].

- Dormancy may lead to financial losses and pose challenges for investors[8].

- Brokers are mandated by SEBI to flag such dormant accounts[3].

2. **Prevention and Reactivation:**

- Regularly monitor and execute trades to prevent dormancy[8][10].

- Opt for nomination or make necessary updates before specified deadlines to avoid dormancy[2][7].

- Reactivation involves visiting the DP office, submitting required forms, and completing necessary paperwork[4][6][9].

Stay proactive to prevent dormancy and adhere to regulatory guidelines to ensure the smooth functioning of your demat account.

[2]: Economic Times

[3]: The Hindu Business Line

[4]: India Today

[6]: Kotak Securities

[7]: Outlook India

[8]: Mint Genie

[9]: Bajaj Finserv Securities

[10]: DNA India

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