A demat account is essential for buying, selling, and holding shares in the Indian stock market. However, many investors stop using their accounts after some time due to lack of trading activity. When this happens, the demat account may become inactive or dormant.

The good news is that reactivating an inactive demat account is usually simple and can be done quickly with your broker.

In this guide, you will learn how to reactivate an inactive demat account in India, why accounts become inactive, documents required, charges involved, and the exact step-by-step process to restore your account.

What Is an Inactive Demat Account?

A demat account becomes inactive (or dormant) when there are no transactions for a long period, typically 12 months or more.

This means:

• No buying or selling of shares
• No deposits or withdrawals of securities
• No account activity

Brokers mark such accounts inactive as a security measure.

If you’re new to stock investing, you should first understand how demat accounts work in our detailed guide on Best Demat Account for Beginners in India.

Why Do Demat Accounts Become Inactive?

There are several reasons why an investor’s demat account may become inactive.

If you want to understand the cost structure, you can read our guide on Demat Account Charges in India.

Can You Reactivate an Inactive Demat Account?

Yes, inactive demat accounts can be easily reactivated.

In most cases, brokers only require:

• KYC verification
• Reactivation request
• Identity confirmation

The process usually takes 24–72 hours.

If you are choosing a broker before reopening an account, you may also want to check our comparison of Zerodha vs Groww for Beginners.

Step-by-Step Process to Reactivate an Inactive Demat Account

Let’s go through the complete process.

Step 1: Contact Your Broker

The first step is to contact the broker where you opened the demat account.

You can do this via:

• Customer support
• Email request
• Broker mobile app
• Website support portal

Common brokers include Zerodha, Groww, Upstox, and Angel One.

Step 2: Submit Reactivation Request

Your broker will ask you to submit a reactivation request form.

This form includes:

• Demat account number
• PAN details
• Contact information

Some brokers allow this process completely online.

Step 3: Complete KYC Verification

Most brokers require re-KYC verification before reactivating accounts.

Documents usually required:

You may need to complete video KYC as well.

Step 4: Update Missing Information

Sometimes accounts become inactive because of missing details.

For example:

• Mobile number not verified
• Email not updated
• Address change

If needed, you can follow guides like:

• How to Update Mobile Number in Demat Account
• How to Update Email ID in Demat Account

Step 5: Broker Reactivates the Account

After verification, the broker will process your request.

Typical timeline:

Once activated, you can start trading again.

Charges for Reactivating Demat Account

In most cases, reactivation is free.

However, some brokers may charge:

You can estimate brokerage costs using our Demat Brokerage Comparison Calculator.

What Happens If You Don’t Reactivate an Inactive Account?

If a demat account remains inactive for a long time:

• You cannot buy or sell shares
• Some brokers may freeze the account
• AMC charges may still apply

However, your shares remain safe with the depository (NSDL/CDSL).

If your account has been inactive for a very long time, read our guide on What Happens If You Don’t Use Your Demat Account for Years.

Can You Close an Inactive Demat Account Instead?

Yes, you can also close an inactive demat account.

This is useful if:

• You opened multiple demat accounts
• You no longer invest in stocks
• You want to switch brokers

You can follow the process explained in How to Close a Demat Account in India.

Tips to Avoid Demat Account Becoming Inactive

To keep your account active:

✔ Make at least one transaction every year
✔ Keep KYC details updated
✔ Pay annual maintenance charges
✔ Check account activity regularly

If you are planning to start investing again with small capital, you can follow our beginner guide on How to Start Investing in Stock Market with ₹1000.

Should You Open a New Demat Account Instead?

Sometimes investors wonder whether it is easier to open a new account.

Here is a quick comparison.

You can also legally open multiple demat accounts in India, which we explain in our guide How Many Demat Accounts Can a Person Have in India.

Final Thoughts

An inactive demat account is not a problem and can be easily reactivated.

Most brokers allow investors to reactivate accounts by completing KYC verification and submitting a simple request. The process usually takes only a few days.

If you plan to start investing again, reactivating your existing demat account is often faster than opening a new one.

Once your account becomes active, focus on disciplined investing and long-term wealth creation.

Frequently Asked Questions

How long does it take to reactivate a demat account?

Most brokers reactivate accounts within 24–72 hours after receiving the request and completing KYC verification.

Is there a fee for reactivating demat accounts?

Usually no. Some brokers may charge a small fee if there are pending charges.

Can shares be lost if the account becomes inactive?

No. Shares remain safe with NSDL or CDSL even if the account becomes inactive.

Can I reactivate my demat account online?

Yes. Most brokers allow online reactivation through their website or mobile app.

Is it better to reactivate or open a new demat account?

Reactivating is usually faster unless you want to change brokers.