Demat of Shares

Dormant Demat account: Demat account of an investor may become dormant due to inactivity for a long time. This frequently happens with passive investors who adopt a ‘buy and forget approach. This may also happen with an investor who opens a new demat account without transferring shares to it from an old account. In such cases, the investor faces problems in trading, transfer, and transmission of shares.

Loss of Demat details: Due to some reasons, a shareholder may lose his demat details, resulting in a complete lack of communication with the company and depository participant.

A shortfall of updated information: An investor has changed address, but the details are correspondingly not updated with the depository participant or the company, resulting in a mismatch with the shareholder’s database. In this case, the investor may lose benefits such as dividends, bonuses, split shares, rights issues, etc.

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