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It is observed that many people open demat accounts with great enthusiasm, but often don’t actively use it later. Well, when a demat account is not operated for long it is termed as inactive by the depository participant before it gets classified as dormant. There is no fixed rule on how long a demat account can remain inactive. A dormant demat account prevents you from buying and selling securities unless you reactivate it. Reactivating a dormant Demat account is easy. If your Demat account has been inactive for an extended period and requires an activation process, you may have to conduct the KYC check again. It is a simple procedure and may be done online in a few minutes. Reactivating your Demat account can be efficient as it as can help you take advantages of the lucrative opportunities in the stock and securities market.

Typically, brokerage houses permit Demat accounts to stay inactive for a specified period before considering them as dormant. Generally, an idle period or a non-transactional period of 3 to 5 years is permitted by most, depending on the broker. You may want to check with your broking firm on the inactive period as you plan to revive your account.

By reactivating your dormant Demat account, you have the potential of multiplying your capital manifold. Until recently, about a decade ago, buying and selling shares was a challenging task due to the absence of electronic trading platforms. Buyers were required to hold their share certificates in a physical form and had to preserve it securely at all times for trading or transferring. With the advent of electronic trading platforms and dematerialisation of shares, holding physical share certificates is now a thing of the past.

Physical Share Certificate surrendered for dematerialization

Physical Share Certificate

Opening a Demat account is easy; however, while most people are enthusiastic about opening a Demat account in the early stages, it often lies unused due to various reasons. To subscribe to upcoming IPOs and profit from the profitable opportunities in the stock market, you may want to resume trading once again by reactivating your Demat account.

 If you had your account closed instead of just deactivation, you will not be able to re-activate the same account. You will have to initiate a new account opening.

Reactivate a dormant Demat account

To reactivate a dormant Demat account, you may have to:

  • Speak to the customer service executives of your brokerage firm or write an official email requesting them to reactivate your Demat account
  • Clear all past Demat account dues, if pending
  • Pay reactivation fees depending on the rate stated by the broker. Depository participants might charge a specific amount while some others may not charge at all depending on the holding in your account
  • Go through the process of Know Your Customer (KYC) requirements as specified by the brokerage firm

The client ID will remain the same as before the de-activation.

It is a good idea to pay your annual maintenance fees and keep a close watch on your Demat and trading accounts. It is also recommended to monitor your portfolio periodically since investing in the stock market requires caution and due diligence. Opening a Demat account with a reputed firm such as Kotak Securities brings you many benefits and is easier than ever. From organised, effective depository services to maintaining your shares in a convenient Demat format you can utilise the right opportunities in the stock market.

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