CLOSE X
Algo Trading
Home

Blogs

Stock Market Blogs

How To Reactivate A Dormant Trading Account? November 26 2021How to reactivate a dormant trading Account

Visit Count: 624

How To Reactivate A Dormant Trading Account?

A huge number of investors and traders open demat and trading account but not all of them operate actively on their account. They even tend to forget to close the account.

Many investors have received emails from their brokerage firms indicating that their trading accounts have become "dormant" as a result of them not making any transactions.

Amid some recent scandals, SEBI and stock exchanges have enacted strict guidelines for detecting inactive accounts with a legal definition.

Why are trading accounts deemed to be dormant?

Trading accounts are deemed to be dormant if no trading activity has occurred in the past or present.  The trading account's inactive period is determined by the broker. The time frame has been reduced to one year under the new rules and regulations.

If no trading activity is detected for a year, the depository participant (DP) has the authority to disable an investor's trading account without their permission.

How can investors activate their dormant account?

If an investor wants to resume trading in the stock market after a break, they must first reactivate their Demat account before moving on to their trading account.

They must clear all dues, including transaction costs, before closing their trading account since it is considered dormant.

Investors must activate their trading account before closing it in order to do both of the aforementioned tasks at the same time.

The process of reactivating a trading account is simple. Demat accounts, on the other hand, incur charges over time that an investor must pay before terminating their account.

Here's a step-by-step process on how to revive your trading account.

·        Restarting the KYC procedure is the first step in reactivating a trading account. In addition to the KYC procedure, the investor must additionally complete In-Person Verification.

·        The IPV procedure has been performed through webcams and established protocols that an investor must follow, due to COVID-19.

·        The process and rules for reactivating a trading account vary based on the Depository Participant, but the method and criteria remain the same.

·        To close their DP and reactivate their trading account, the customer must send a letter to the company's headquarters or use any other digital options offered by the broker.

·        Investors can restart their trade by sending copies of their PAN and AADHAR cards to the company's headquarters and following the instructions provided by the office.

An investor can easily revive their trading account in this manner.

Open instant demat account with Indira Securities 

COMMENTS
Form
Categories
Blog Enquiry

Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Shivkumar P. Email: compliance@indiratrade.com. Call : 0731-4797275

Investor grievance complaint : complaint@indiratrade.com

INVESTOR CHARTER