India’s market regulator, SEBI, is working on improving investor services. They are considering updates to the dormancy criteria for Demat accounts and taking steps to prevent fraud.
Proposed Changes
Dormancy Rule Update: SEBI plans to introduce new rules for demat account dormancy.
Accounts will only be considered inactive if there have been no transactions for 12 months, up from the current 6 months.
Accounts with active applications like SIP and rights issues will remain active, but bonus and stock splits won’t count.
Enhanced Security Measures
Secure Demat Accounts: SEBI is also increasing the security of demat accounts. Inactive accounts will have delivery instruction slips sent to their registered address, with authorization required from a senior officer. Lump sum transfers will undergo double verification.
This move aims to provide a safer and more investor-friendly environment.
