Your demat account has been lying dormant for years. Now, you are finally ready to get in on some equity action. The process of how to open a demat account is clear, but how do you revive a dormant demat account?
Some brokerage firms label a demat account as dormant if it’s been inactive for three years. Others have a time limit of five years. Find out whether your inactive account is actually dormant. If you are within the time limit, you may not need to reactivate the account at all. This time limit often depends on the maintenance fees you pay. Account holders who pay a one-time maintenance fee get a longer time limit than those who pay the fee annually.
Get a reactivation form from your broker or depository participant (DP). Submit this form along with documentary proofs such as PAN card, passport, and so on.
Do you have pending maintenance dues? You will have to clear them before your account can get reactivated.
You may need to pay reactivation charges of Rs 500 to the DP. However, this fee could be waived if the value of the shares in your account is very high.
Related: Features of a demat account
Log in to your demat account once in six months to stay informed about its status and to check your holdings. But simply checking your account will not prevent it from becoming dormant. Make sure to buy or sell securities through your demat account to keep it active.
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