A dormant Demat account is one that has not been used for an extended period, indicating inactivity due to the absence of recent transactions.

Know How To Reactivate Dormant Demat Account

A dormant Demat account can pose drawbacks, including:

1. Incurred Charges: Annual maintenance charges may apply even when the account is inactive.

2. Security Concerns: The account may be susceptible to fraud or misuse, potentially leading to unauthorized access, information alteration, or unauthorized share sales.

3. Missed Opportunities: Inactivity may result in missed opportunities and benefits from the stock market, such as dividends, corporate actions, and price appreciation.

To monitor and reactivate a dormant Demat account, investors should take the following steps:

1. Contact DP or Broker: Reach out to the depository participant (DP) or the broker who opened the account and request reactivation.

2. Fill Reactivation Form: Complete a reactivation form and submit necessary documents, including identity proof, address proof, PAN card, bank account details, etc.

3. KYC Compliance: Fulfill KYC requirements and sign an agreement with the DP or broker.

4. Clear Dues: Settle any pending dues or negative cash balance in the account.

5. Confirmation: Once the process is completed, receive confirmation from the DP or broker that the account has been successfully reactivated.