SEBI weighs two-year dormancy rule for demat accounts
In short
SEBI is considering a rule that would treat demat accounts as dormant after two years of no use. The move is meant to match the rules for trading accounts and stop possible misuse of old accounts.
If adopted, it could change how investors and brokers handle inactive demat accounts and add more oversight to account activity.
What the reporting says
SEBI is weighing a two-year dormancy rule for demat accounts, according to a BusinessLine Markets summary. The move aims to align treatment with trading accounts and curb possible misuse of long-unused accounts. The proposal points to tighter account oversight for investors and brokers if it is adopted.
Why it matters
SEBI is weighing a two-year dormancy rule for demat accounts to bring them in line with trading account treatment and reduce the risk of misuse of long-unused accounts. The proposal affects investors, brokers and market intermediaries that handle demat holdings. No implementation date or final decision is provided, so the effect remains prospective.