How to Reactivate Dormant demat account?

Sometimes, you open a demat account, start making transactions, and then, over time, forget about it. If you don't actively use your account, it can become dormant. To keep your account active, you need to make transactions regularly. If your account has already become dormant, don't worry—you can reactivate it in a few simple steps. So, let’s understand the dormant demat account meaning and how to reactivate it.

How do demat accounts become dormant?

Inactivity makes a demat account dormant. A demat account becomes dormant if you haven’t made any trades (buying or selling) in the account for a consecutive 12-month period. This applies across all exchanges and is a standard security measure to prevent unauthorised use.
To check whether your demat account is dormant, simply log in and review the account status. Your depository participant (DP) may also notify you about the dormancy and provide instructions for reactivation.

Impact of a dormant demat account

• Restricted transactions: You cannot buy or sell securities until your demat account is reactivated.
• Security risks: SEBI (Securities Exchange Board of India) mandates reactivation to prevent fraud, as dormant accounts can be used for unauthorised transactions.
• Additional verification required: You may need to complete KYC and in-person verification if your account has been inactive for more than 24 months.
• Potential reactivation fees: Some depository participants may charge a fee to reactivate dormant accounts.
• Delayed investment opportunities: If you wish to resume trading, you must first complete the reactivation process, which may take time. This delays your investment opportunities.

How to reactivate your dormant demat account?

The process of reactivating your demat account depends on your depository participant and how long the account has been inactive. Here’s how to reactivate dormant demat account:

If dormant for 12–24 months

If your account has been inactive for less than 24 months, you can log in to your account and follow the reactivation instructions provided by your DP. You don't need to complete the KYC process again.

If dormant for more than 24 months

If your account has been inactive for more than 24 months, you must complete the Know Your Customer (KYC) process again. You must also complete the In-Person Verification (IPV), which can usually be done online. Submit the required KYC documents to complete the process of how to revive a dormant demat account.

Step-by-step guide to reactivating your dormant demat account

Here are the steps to reactivate inactive demat account:

Step 1: Contact your depository participant

A depository participant (DP) is an entity authorised by a depository to offer demat account services. Banks and brokers act as depository participants. To begin reactivation, you need to reach out to your DP in-person, through email, or through phone. The DP will provide you specific instructions to reactivate a dormant demat account.

Step 2: Submission of the reactivation application

Complete and submit the application form for reactivation as per the DP’s guidelines. Usually the DP provides a physical or online reactivation form. You are required to provide the necessary details and documents.

Step 3: Fulfilling KYC requirements

If your account has been dormant for more than 24 months, you will need to complete the KYC process. The process includes providing documents for identity verification and address confirmation. You may need to submit your identity proof, address proof, and other required documents.

Step 4: Await verification and confirmation

Once you submit the required documents, your DP will start the process for reactivating dormant demat account. The information that you provided will be verified in the dormant demat account reactivation procedure. Once the verification is completed, your account will get reactivated. When reactivating demat account with broker, the duration may vary depending on the DP’s procedures.

Required documents for reactivating a dormant demat account

For accounts dormant for less than 24 months

• A copy of your PAN card.
• A valid address proof like Aadhaar card, voter ID, and your utility bills like electricity bills.

For accounts dormant for more than 24 months:

• A completed Know Your Customer (KYC) form.
• A copy of your PAN card
• a valid proof of address- aadhaar card, voter ID card, electricity or other utility bills, etc.
• Your passport-sized photographs. Please submit recently captured photos to reactivate demat account after inactivity.
• A copy of your bank statement.

Conclusion

Keeping your demat account active ensures uninterrupted access to your investments and prevents security risks. If your account has turned dormant, know how to reactivate a demat account online and regain control. Regular transactions and periodic account monitoring can help you avoid future dormancy. Stay proactive and secure your financial future.
Open an Axis Direct demat and Trading Account to buy, sell, and monitor your investments conveniently. This 3-in-1 account acts as your demat account, Trading Account, and Savings Account. Invest in a wide range of securities including shares, Mutual Funds, and bonds digitally with this account.

Also Read: 9 benefits of having a demat account

Frequently Asked Questions

Can I reactivate a demat account after several years of inactivity?

Yes, you can reactivate a demat account regardless of how long it has been dormant. However, you may need to complete the KYC process and submit additional documents if it has been inactive for more than 24 months.

How long does it take to reactivate a dormant demat account?

The time taken to reactivate your demat account depends on your depository participant. Typically, reactivation takes a few days to a couple of weeks, depending on the verification process.

Can I open a new demat account in case of demat account dormant?

Yes, you can open a new demat account even if your old one is dormant. However, it is advisable to reactivate your demat account dormant status to avoid unauthorised transactions and to access your existing investments in that account.

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.