Hello, I have some doubts.
Suppose I had a demat account with Broker X, which also acted as the depository participant (DP). I had ₹1 lakh in that account but forgot about it for 15 years. When I realized my broker and DP had closed, can I still recover my securities?
From what I’ve read, if a broker closes, I must transfer my shares to another demat account via the CDSL Easiest portal, with the DP approving the transaction. But in this case, since the DP is also closed, who would approve the transfer? Also, my demat account is inactive, and reactivating it requires contacting my broker and DP—both of which are closed.
What steps can I take to recover my shares?
Just curious to know
Hi @Sayantan2003 , if a broker has closed operations or defaulted, like in Karvy case, the demat accounts remain safe with the depository. In Karvy’s case, IIFL Securities acquired the demat accounts through a formal bidding process, and clients had to complete re-KYC and submit documents to activate their accounts.
Once activated, investors could manage their holdings or transfer them to another broker using DIS or the CDSL Easiest route.
Before that, it’s best to contact the depository (CDSL or NSDL) directly. If yu have the demat number or PAN, they can verify and give you the account status.
Also, if any stocks paid dividends while the account was inactive, unclaimed amounts and shares may have been transferred to the IEPF. So first, need to verify with the depository and then proceed with the broker or transfer steps.