Market regulator SEBI is preparing to provide a big facility to investors. The market regulator is considering changing the dormancy criteria of Demat account. According to information received from sources, new proposals can be brought in this regard. Besides, SEBI is also considering measures to prevent fraud in demat accounts.
According to news quoting sources, SEBI is proposing to bring new rules on dormancy of demat accounts. There are preparations to make uniform rules in all exchanges and depositories. According to the new proposal, the demat account will be considered inactive only if there is no transaction for 12 months instead of 6. Apart from this, if application for SIP, rights issue etc. is given, then the account will be considered active. However, bonus, stock split etc. will not be valid for active.
Demat Accounts Will be Safer
According to the current rules, if there is no debit transaction for 6 months, the account goes inactive. There will also be new measures to make demat accounts more secure. Delivery instruction slips of inactive accounts will be sent to the address. DIS will be sent only after authorization by the senior officer. There will be double verification on the request for lump sum transfer from demat accounts.