SEBI plans 2-year dormancy for demat and trading accounts
SEBI is planning a new rule that would label both demat and trading accounts as "dormant" if there's no activity for two years.
Right now, trading accounts are considered inactive after two years of no trading activity, while demat accounts do not have a corresponding uniform dormancy rule, but the change aims to stop inactive accounts from being used for fraud or cyberattacks.
If you invest or trade, this could mean you'll need to keep your account active, or risk it being classified as dormant and requiring verification or reactivation before transactions can resume.
Depository participants can clear inactive accounts
With this rule, depository participants can finally clear out old, unused accounts and focus on real users, making things smoother and more secure.
SEBI may also ask investors to update their contact details so you won't miss any important alerts about your account status.
The goal: fewer headaches for everyone and better protection against financial scams.