What Happens If You Don't Use Your Demat or Trading Account?
Published 2026-10-16 · Aadarna Stock Broking Pvt. Ltd.
Key takeaways
- Trading accounts with no activity for a long period are marked inactive or dormant as a safety measure.
- Your holdings remain yours; dormancy restricts activity, it does not take away your shares.
- Reactivation usually needs fresh verification, such as re-KYC.
- Maintenance charges may continue on unused demat accounts, so close accounts you do not need.
Many people open a trading and demat account, buy a few shares, and then forget about it. Years later they try to log in and find the account inactive or dormant. This is common and fixable. This guide explains why it happens and what to do.
Why accounts become inactive
Exchanges and brokers have rules under which a trading account with no trades for a long period is flagged as inactive or dormant. The idea is protection: an account nobody is using is a target for misuse, so extra checks are applied before it can be used again.
Demat accounts with no debits for a long time can also be flagged by the Depository Participant. The exact periods are set by the exchanges, depositories and your broker's policy.
What happens to your shares
Your shares stay in your demat account and remain yours. You keep receiving dividends to your linked bank account and corporate benefits such as bonus shares.
What changes is that you may not be able to trade or move shares until the account is reactivated.
How to reactivate
The exact steps depend on your broker, but they usually include:
- Logging in, or contacting your broker or Authorised Person, to start the reactivation request.
- Completing re-KYC: confirming your identity, address, mobile number and email, often online with Aadhaar-based OTP.
- Updating your bank details and nominee if they have changed.
- Submitting income proof if you want to reactivate segments such as futures and options or commodities.
- Waiting for the broker to verify and reactivate the account.
Use only your broker's official app, website or support channel for this. Never share your password or OTPs with anyone offering to reactivate the account for you.
Charges on unused accounts
A demat account may carry an annual maintenance charge even if you never use it, as per your Depository Participant's tariff. If unpaid charges build up, they may be recovered when you next use the account. Check your broker's current tariff to know what applies to you.
Closing an account you no longer need
If you have more accounts than you need, closing the extras makes it easier to keep track of your holdings and avoids ongoing charges. Before closing:
- Transfer any holdings to your other demat account in your own name, or sell them.
- Clear any outstanding dues.
- Submit the account closure request through your broker's official process.
- Keep the closure confirmation for your records.
A demat account with holdings in it cannot be closed until those holdings are moved out.
Frequently asked questions
Will I lose my shares if my account is dormant?
No. Dormancy restricts activity in the account; the shares stay in your name in the depository's records.
I forgot which broker I opened an account with. How can I find out?
Your Consolidated Account Statement (CAS) from CDSL or NSDL lists the demat accounts linked to your PAN, along with the Depository Participant's name.
Can an Authorised Person help me reactivate my account?
Yes, an Authorised Person can guide you through your broker's process. You complete the verification yourself, and you should never share passwords or OTPs.
Sources
- CDSL – SEBI master circular for depositories (includes dormant account safeguards)
- Angel One help – dormant accounts and reactivation
- NSE – exchange website
Risk disclosures on derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to ₹50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Source: SEBI study dated January 25, 2023 on "Analysis of Profit and Loss of Individual Traders dealing in equity Futures and Options (F&O) Segment", wherein Aggregate Level findings are based on annual Profit/Loss incurred by individual traders in equity F&O during FY 2021-22.