The National Stock Exchange (NSE) on October 25, 2024, issued a circular regarding the Treatment of Inactive Trading Account.
In view of the representations received from Brokers’ Industry Standards Forum and after consideration of the same by SEBI, members are requested to note revised guidelines on Treatment of Inactive Trading Account as under:
• Definition of Inactive Trading Account: In case of trading account, the term inactive account refers to such account wherein any of below mentioned activities has not been carried out by client since last 24 (Twenty-Four) months:
o Trading or participation in OFS/buy-back/Open Offer across any of the exchanges/segments* of the exchanges through the same Member or
*Cash/Equity Derivative/ Currency Derivative/ Commodities Derivative/EGR /Debt/Online Bond Platform/ Execution Only Platform /Any other segment as may be allowed by SEBI/stock exchanges from time to time.
o Transaction in nature of applying/subscribing IPOs (where the IPO bid is successful & not cancelled)/SGBs/Mutual Funds (lumpsum investment or investments through successful SIP instalment payments) on the Mutual Fund platform of the stock exchanges through the same Member or
o Modification/updation of e-mail Id/Mobile Number/Address in KYC record of client through the same Member and the same has been uploaded to KRA to ensure Validated/Registered status.
The inactive accounts identified based on the above criteria shall be flagged as ’Inactive’ by the Trading Member in UCC database of all the respective Exchanges.
[Circular No. 80/2024]
