Key Points
A demat and trading account is a gateway to buy and sell various securities from stock exchanges like the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) or the Multi Commodity Exchange (MCX)..
One can buy different securities such as shares, bonds, commodities etc. via a trading account and hold them using their demat account..
The circular issued by NSE is also applicable to other stock exchanges as well.. "According to stock exchange guidelines if an individual has not done a trade for 12 months in any segment, then their trading account has to be classified as dormant..
Hence, if an individual does not trade (buy or sell) in any segment (cash, currency etc.) for 12 months, then the demat and trading account will become dormant..
Period between 12 months and 24 months: If the time period for dormancy of trading and demat account is between 12 months and 24 months since the last trade, then the trading account can be activated on request from the individual either on email or call to his/her stockbroker..
