How To Reactivate A Dormant Trading Account?
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
investors have received emails from their brokerage firms indicating that their
trading accounts have become "dormant" as a result of them not making
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?
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
trading activity is detected for a year, the depository participant (DP)
has the authority to disable an investor's trading account without their
How can investors activate their dormant account?
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.
clear all dues, including transaction costs, before closing their trading
account since it is considered dormant.
must activate their trading account before closing it in order to do both of
the aforementioned tasks at the same time.
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
Here's a step-by-step process on how to revive your trading
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.
can easily revive their trading account in this manner.
Open instant demat account with Indira Securities