Demat and Trading Account: If you also have a Demat account then there is important news for you. Demat and trading account acts as a gateway to buy and sell shares from stock exchanges like Bombay Stock Exchange (BSE), National Stock Exchange (NSE) or Multi Commodity Exchange (MCX).
Demat and Trading Account: If you also have a Demat account then there is important news for you. Demat and trading account acts as a gateway to buy and sell shares from stock exchanges like Bombay Stock Exchange (BSE), National Stock Exchange (NSE) or Multi Commodity Exchange (MCX). Through a trading account one can buy shares, bonds, commodities etc. and hold them using their demat account. However, both trading and demat accounts may become inactive due to non-activation of the account. Not being active means not doing any trading for 12 consecutive months.
When does Demat account become inactive?
According to the NSE notification dated June 30, 2023, if a trading account is not active for 12 months, then stockbrokers will classify that account as not active. The circular issued by NSE also applies to other stock exchanges. Trading means buying and selling any shares from the stock exchange. This includes exchange traded funds (ETF), shares, bonds, commodities etc. A trading account allows trading across multiple categories like cash, futures and options, currencies, commodities, etc. If a person does not trade in any segment (cash or currency etc.) for 12 months, the demat and trading account will become inactive.
How to activate demat account
Stockbrokers say that the method of activating a demat or inactive securities trading account depends on how long the demat account has been inactive. SEBI has divided Demat account not being active into 2 categories. Demat account not being active for the first 12 months to 24 months continuously. The second will not be active for more than 24 months. If the trading and demat account is not active for 12 months to 24 months then the account can be activated through call or email. If it is for more time then you will have to go to the branch.
How to activate demat account
Stockbrokers say that the method of activating a demat or inactive securities trading account depends on how long the demat account has been inactive. SEBI has divided Demat account not being active into 2 categories. Demat account not being active for the first 12 months to 24 months continuously. The second will not be active for more than 24 months. If the trading and demat account is not active for 12 months to 24 months then the account can be activated through call or email. If it is for more time then you will have to go to the branch.
