How to reactivate a dormant demat account? MintGenie explains
demat account and trading account signifies your entry into the realm of financial markets, enabling you to invest in a variety of securities such as stocks, bonds, mutual funds, derivatives, and commodities. These accounts serve as gateways to direct access to these securities, enabling you to trade freely and diversify your investment portfolio. Nonetheless, it's crucial to regularly check your stock holdings, fund balance, and stay informed about bonus shares and dividend payouts by logging into your demat account frequently.
If you haven't made any trades (buying and selling) in your demat account for a consecutive 12-month period, the account will become dormant due to inactivity. Demat accounts: Everything you should know about the annual maintenance charges on them The term inactive account refers to an account wherein no trades have been carried out in the last 12 (twelve) months across all exchanges. In recent times, there has been a significant surge in demat account openings, largely driven by the booming stock market.
Despite the increase, the number of active demat accounts remains relatively low compared to the total count, which currently stands at 14 crore in India. In this article, we will explore why it is necessary to monitor dormant demat accounts, and how to reactivate a dormant demat account. A dormant demat account is a dematerialised account that has not been used for a year.
It could be because the investor has not made any transactions or the account has been inactive. The account is still active, but there are no recent trades taking place. A dormant demat account is different from a closed demat account.
Read more on livemint.com
