Important developments about Demat and Trading Accounts! You won't be able to trade and the demat account won't be operational if this occurs

Important developments about Demat and Trading Accounts! You won't be able to trade and the demat account won't be operational if this occurs

Important developments about Demat and Trading Accounts! You won't be able to trade and the demat account won't be operational if this occurs

Demat and Trading Account: We have some exciting news if you also have a Demat account. Buying and selling shares from stock exchanges such as the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), or Multi Commodity Exchange (MCX) is facilitated by demat and trading accounts.

Demat and Trading Account: We have some exciting news if you also have a Demat account. Buying and selling shares from stock exchanges such as the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), or Multi Commodity Exchange (MCX) is facilitated by demat and trading accounts. One may purchase stocks, bonds, commodities, and other assets via a trading account, then keep them in their demat account. However, if the account is not activated, it might become dormant for both trading and demat accounts. Being inactive is defined as not trading for a whole year.

When does a Demat account stop being used?

As per the June 30, 2023 NSE announcement, stockbrokers would designate a trading account as inactive if it remains inactive for a full year. The NSE circular is applicable to other stock exchanges as well. Buying and selling any shares from the stock market is referred to as trading. This covers commodities, shares, bonds, exchange-traded funds (ETF), and so on. Multiple category trading, including cash, futures and options, currencies, commodities, etc., is possible with a trading account. If a person does not trade in any sector (cash or currency etc.) for 12 months, the demat and trading account will become dormant.

How to get a demat account activated

According to stockbrokers, the process for reactivating an inactive stocks trading account or demat account varies depending on how long the account has been dormant. SEBI has separated non-active Demat accounts into two groups. Demat account not being active during the first 12 months to 24 months constantly. The latter won't be operational for more than 24 months. The trading and demat account may be reactivated by phone or email if it hasn't been used for 12 to 24 months. Should it be for an extended period, you will need to visit the branch.

How to get a demat account activated

According to stockbrokers, the process for reactivating an inactive stocks trading account or demat account varies depending on how long the account has been dormant. SEBI has separated non-active Demat accounts into two groups. Demat account not being active during the first 12 months to 24 months constantly. The latter won't be operational for more than 24 months. The trading and demat account may be reactivated by phone or email if it hasn't been used for 12 to 24 months. Should it be for an extended period, you will need to visit the branch.