How to Reactivate Trading Account

Last Updated: 3 Sep 2025

Many Investors open trading accounts exclusively for conversion of physical shares, for IPO application, and more. Such accounts tend to be inactive once such objectives are achieved. Broking has been a stepping stone in tightening regulations surrounding trading in securities. It has raised concerns over the fraudulent use of trading accounts and related repercussions. With the revised regulations regarding trading accounts, the government aspires to maintain stricter control and instill vigilance amongst investors. But, how do you know if an account is inactive and how to reactivate demat account?

What is an Inactive Trading Account?

An inactive trading account is when there has been no trading activity within a specified period. Earlier, such period was defined by each intermediary independently, typically ranging from eleven months to five years. However, the advent of trading account related misfeasance has distinctly defined the period of inactivity. If an account does not have any trading activity for a year, then it is termed an inactive or dormant account. Dividend receipt or corporate action such as stock split, bonus among others is not considered as account activity. The depository participant is mandated to report it as an inactive account.

What Happens to a Dormant Trading Account?

Once an account is marked as inactive, you cannot trade until the account is reactivated. Any debit or sale activity in a dormant account is viewed as being sensitive by the intermediary. Controls and systems are established which require such sale to be authorized or the account to be reactivated prior to the execution of the transaction. Reactivation of the account takes anywhere between five to seven days. The intermediary may intimate the clients in advance about account inactivity and eventual classification as a dormant account so that the client may take corrective action.

How do I Reactivate a Trading Account?

If your trading account has gone dormant for some time, all brokers disable it to abide by regulatory requirements. You can easily re-enable it, but you need to do this the right way to prevent any delay. Here is an in-depth guide to dormant demat account reactivation:

1. Call Your Broker

Contact your broker’s customer support team by phone, email, or by going to the nearest branch. Inquire about the reactivation form for the trading account or see if it can be accessed online using the broker’s website or mobile application.

2. Complete the Reactivation Form

Give your details, which include name, account number, PAN, and registered contact details. Indicate the reason for dormancy and confirm your willingness to resume trading. Some brokers permit you to fill and submit this form online, while others will demand a physical signature.

3. Update KYC Details (if needed)

If your KYC is expired or incomplete, you may be required to get it updated. Submit valid proof of address (utility bill, bank statement, etc.) and identity (PAN card, Aadhaar, passport, etc.). Upload them through the online portal of the broker for KYC or submit photocopies in person.

4. Submit Income Proof (if selling derivatives)

For F&O (Futures & Options) segment activation, generally, the brokers ask for proof of income. The documents which can be accepted are salary slips, bank statement, ITR acknowledgement, or Form 16.

5. Send the Form and Documents

Send your filled-in form and documents to your broker online (scanned) or offline (hard copies). Make sure that all documents are legible and signed as and where necessary.

6. Broker Verification

The broker will check your details and documents according to SEBI rules. The procedure may take 24–72 hours, depending on the broker and the completeness of your submission.

7. Reactivation Confirmation

Once checked, you will receive an email or SMS confirmation that your trading account is live again. You can then access your trading platform and begin placing orders.

Documents needed to Reactivate Your Trading Account

Document	Purpose	Notes
Reactivation Request Form	To formally request the reactivation of your trading account	Available from your broker or depository participant
PAN Card	Proof of identity	Submit a self-attested copy
Aadhaar Card / Address Proof	Proof of address	Could also be a passport, voter ID, or utility bill (as per broker’s accepted list)
Bank Proof	To verify linked bank account	Cancelled cheque, bank passbook copy, or bank statement
Income Proof	Required for trading in derivatives (F&O)	Salary slip, Form 16, ITR, or bank statement showing income
Photograph	For updating KYC records if required	Passport-sized recent photo

Final Words

Trading in the securities markets provides a host of opportunities. At the same time, it requires every investor to be vigilant and proactive. A long-term investor may not require an active trading account at all times, while a short-term investor may have multiple trading accounts. In both cases, the investor must be aware of the risks involved and establish adequate mitigants. You can stay informed and manage your trading activities efficiently using a stock trading app.

Frequently Asked Questions

1. How many working days does it take to reactivate my trading account?

It typically takes 2 to 5 working days after providing all the documents needed. The timeframe will depend on the speed of your broker’s processing.

2. Can I reactivate my account online?

Yes, reactivation is often possible online via your website or mobile app. You need to provide scanned copies of the documents needed.

3. Do I have to pay reactivation charges?

Certain brokers charge a small reactivation fee, and some provide it without any charge. Always confirm with your broker prior to initiating the process.

4. Can I view my old holdings after reactivation?

Yes, after reactivating your account, you will be able to view all your old holdings. However, make sure your linked Demat account is operational too.