How to Deal with Inactive Demat Accounts?
A Demat account is a crucial tool for investors to hold securities in an electronic format. However, in some cases, investors may not use their Demat account for an extended period, resulting in the account becoming deactivated. An inactive demat account can lead to several issues, such as increased fees, unclaimed dividends, and difficulty accessing the account. Therefore, it is essential to deal with non-active demat accounts promptly. Here are some steps to deal with inactive demat account opening:
Check the status of the account.
The first step is to check the status of the demat account. Investors can log in to their Demat account and check the account balance and transaction history. If the account has been inactive for a long time, it may have a negative balance due to fees and charges. When this occurs, investors will have to pay the latest fees and charges to reactivate their accounts using the best stock trading apps available on the market.
Contact the deposit participant (DP).
If the account is inactive, investors need to contact the Depository Participant (DP) with whom the account is registered. The DP is responsible for maintaining the demat account and can provide details on the status of the account. The DP can also guide investors on the process to reactivate the account and the fees and charges involved while proceeding with a demat account opening.
Submit the required documents.
To reactivate the account, investors may need to submit some documents, such as a KYC form, address proof, and identity proof, as per the requirements of the DP. The documents may vary depending on the DP and the account holder’s status, such as whether the investor is an individual or a corporate entity.
Pay the fees and charges.
To reactivate the account, investors need to pay the outstanding fees and charges, including annual maintenance charges, transaction charges, and penalty charges, if any. There may be differences in the DP’s fees and charges, depending on the status of the account holder. By opening a demat account, the DP is able to reactivate the account once the fees and charges have been paid.
Claim the unclaimed dividends
In some cases, inactive Demat accounts may have unclaimed dividends, which investors can claim after reactivating the account. When using the best stock trading app, DPs can guide investors on how to claim unclaimed dividends and what documents are required.
Transfer the securities.
After reactivating the account, investors can transfer the securities from the inactive account to an active account or sell them. Investors need to ensure that they update their contact details and maintain regular transactions to avoid the account becoming inactive again with a demat account opening.
In conclusion, inactive Demat accounts can lead to several issues, and it is essential to deal with them promptly. Investors need to check the status of the account, contact the DP, submit the required documents, pay the outstanding fees and charges, claim the unclaimed dividends, and transfer the securities to an active account using the best stock trading app.