How to Reactivate Your Trading Account?

If you haven't used your trading account in a while and want to start trading again, you've come to the right place. We will walk you through the steps to reactivate your dormant trading account. We have you covered, from knowing the dormancy period to paying any dues and dealing with reactivation expenses. Following these instructions will allow you to quickly reactivate your inactive account.

Know Your Time Limit 

Before you reactivate your dormant trading account, you should first establish how long your account has been dormant. Your brokerage firm or depository participant (DP) determines this period, which is normally about a year, based on the lack of any trading activity. Different intermediaries may have varying dormancy periods, thus it is critical to review the terms and conditions provided by your intermediary.

Knowing the timing for dormancy is vital since it influences the reactivation process. If your account has been dormant for less than the specified time, you may not need to go through official reactivation. However, if it has stayed dormant for an extended period of time, you must restart it using the instructions provided.

Furthermore, the duration of dormancy may be determined by the maintenance expenses associated with your account. Accounts with annual maintenance payments may have shorter dormancy periods than ones with one-time fees. Therefore, understanding the fee structure is crucial when determining dormancy duration.

Reactivating Your Account 

Here's a thorough guide that will help you handle the procedure smoothly:

1. Obtain the reactivation form: The first step is to obtain the reactivation form from your broker or depository participant (DP). This form is your official request to reactivate your dormant account and resume trading.
2. Gather Documentary Proofs: You will need to acquire documentary proof of your identity to accompany the reactivation application. Before starting, make sure you have your PAN card, passport, or any other essential documents readily available.
3. Fill out the form: Take your time and fill out the reactivation form properly and legibly. Double-check all of the information you submit to minimise delays in processing your request.
4. Submit the Form and Documents: Once you've completed the paperwork and acquired the appropriate documents, submit them to your broker or DP in compliance with their instructions. This step formally kicks off the reactivation procedure for your dormant trading account.
5. Clear Pending Dues: Before reactivating your inactive account, you must pay any outstanding maintenance fees. This includes paying annual maintenance fees and any outstanding payments owed to your intermediary.
6. Understand the Reactivation Charges: Please keep in mind that the DP may charge you some amount for reactivation. These charges, however, may be eliminated if the value of the shares in your dormant account surpasses a particular threshold.
7. Stay Informed: Throughout the reactivation process, reach out to your broker or DP to stay up to date on the status of your account. Clear communication can assist in quickly resolving any possible challenges or inquiries.
8. Follow-Up: If you have not received a response, do not hesitate to contact your intermediary again. A simple reminder can help to speed up the processing of your reactivation request.
9. Be patient: Reactivating an inactive trading account may take some time, so please be patient throughout the process. Remember that your intermediary is working to ensure that everything is in place for your account to be reactivated smoothly.

Do remember, the exact steps may vary across broker platforms, and you may need to contact your broker’s customer service team to understand the process.

Documents Required To Reactivate Dormant Demat Account

To reactivate your dormant demat account, you need to submit a few basic documents for identity verification and compliance purposes. These ensure that your account is secure and updated before transactions can resume. Here’s a list of some common documents that you will need to submit along with the duly completed demat account activation form:

• Proof of Identity (POI): Aadhaar card, PAN card, passport, voter ID, or driving licence.
• Proof of Address (POA): Aadhaar card, passport, voter ID, utility bill, or bank statement (recent).
• PAN Card: Mandatory for all demat accounts.
• Recent Photograph: Passport-sized, as per KYC norms.
• Reactivation Request Form: Duly filled and signed.

Cancelled Cheque/Bank Proof: For bank account linkage verification, if required (such as change in the linked bank account).

Reactivating Your m.Stock Account

To resume trading and investing with your m.Stock account, follow these steps to reactivate your dormant demat account within a year of dormancy:

• Log in to your m.Stock account.
• You will get a pop-up on login.
• Click on the “Reactivate my account” button on the pop-up.
• Your account reactivation request will be logged and you will receive an email on your registered ID.
• You will receive an email containing the reactivation form.
• Download and complete the reactivation form.
• Send the necessary documents (identity proof, address proof, PAN card, and bank account details for re-KYC) to 1st Floor, Tower 4, Equinox Business Park, LBS Marg, Kurla (W), Mumbai – 400 070.
• You will receive confirmation via email upon receipt of your documents.
• Complete the eKYC process and settle any outstanding dues or negative cash balance in your account.
• You will receive confirmation of your account reactivation within 7 to 10 working days. Once confirmed, you can resume using your account as usual.

Settle All Dues

Before you fully reactivate your dormant trading account and resume trading, you must first settle any outstanding balances. This step is crucial for ensuring a smooth reactivation process and avoiding unwanted delays or issues.

Review your account statements to see if there are any outstanding maintenance fees or other payments owed to your brokerage firm or depository participant (DP). These fees may include annual maintenance fees, transaction charges, or any other expenses related to the management of your account.

To settle your account, you may need to make a direct payment to your brokerage firm or DP. This can typically be accomplished by a variety of payment options, such as internet banking, cheque, or NEFT/RTGS transfer. Make sure to confirm the accepted payment options with your intermediary to ensure that your payment is completed quickly.

If you are confused about the status of your payments or need help determining the amount owed, please contact your broker or DP for clarification. They would be happy to help you and offer advice on how to properly settle your debts.

Clearing your outstanding balances not only speeds up the reactivation of your inactive trading account but also helps you maintain a strong relationship with your intermediary. By meeting your financial commitments on time, you demonstrate your commitment to responsible account management while enabling a smooth reactivation process.

Reactivation Charges

In a few instances, you may be required to pay reactivation fees to your provider. These charges may vary as per the platform, however, they may also be waived if the value of the shares in your dormant account surpasses a particular threshold. To avoid surprises during the reactivation process, make sure to speak with your intermediary about these charges.

Keep Your Demat Account Active

Reactivating your dormant trading account is only the first step; it is also important to keep your demat account active to avoid it from falling into dormancy again. Make it a practice to check in on your demat account at least once every six months to keep track of its status and assess your holdings. Regular trading actions, such as purchasing and selling stocks through your account, will also help to keep it active.

How To Avoid Common Reactivating Mistakes For Dormant Demat Account?

When reactivating a dormant Demat account, lack of awareness can lead to delays, repeated documentation, or additional costs. Being aware of these mistakes in advance helps you complete the process smoothly, without unnecessary back-and-forth with your depository participant or broker.

• Not updating KYC details before submission
  Always verify your KYC details such as address, email ID, or phone number are up to date with valid proof before starting the reactivation process.
• Submitting incomplete or outdated documents
  Ensure you download the latest forms from your broker’s website and double-check that all required fields are filled in correctly.
• Ignoring linked bank account updates
  If your linked bank account has changed since your Demat account became dormant, submit bank proof (like a cancelled cheque) along with your reactivation request.
• Not clearing pending charges or dues
  If there are unpaid annual maintenance charges (AMC) or penalties on your account, your reactivation request might be held until these are cleared. Check your account statement for any outstanding balance before applying.
• Failing to link Aadhaar for e-sign
  If your broker offers online reactivation via Aadhaar-based e-sign, ensure your Aadhaar is linked to your mobile number.
• Delaying in-person verification (IPV)
  Some brokers require in-person verification as part of reactivation, either physically or via video call. Schedule IPV promptly after submitting your documents.

By preparing thoroughly and avoiding these common mistakes, you can speed up the reactivation process, save effort, and start transacting without delays.

Conclusion

Reactivating a dormant trading account might seem challenging at first, but with the proper knowledge and direction, it is feasible. Understanding the dormancy timeframe, completing the proper paperwork, settling unpaid dues, and remaining proactive in your trading activity will help you reactivate your dormant account and resume your pursuit as an active trader.