Tipping Point: Can a demat account become dormant?

To reactivate your demat account, you will have to fill a reactivation form and submit Know Your Customer (KYC) details. Your DP will also verify if your signatures match the original records

Yes. If no transaction is done for a long period, a demat account can turn dormant. There is no fixed rule on how long a demat account will be allowed to remain inactive before being classified as dormant. It varies on the agreement between the depository participant (DP), bank or broker, and the customer. Usually, it depends on the way maintenance fee is charged. If it is a lifetime or one-time fee, then the account can remain inactive for a longer period without being classified as dormant. However, if the DP charges an annual maintenance fee, it could be classified