# Is this article from Economic times correct?
**URL:** https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479
**Category:** Zerodha
**Created:** [July 22, 2024, 11:02am UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479 "2024-07-22T11:02:44Z")
**Posts on this page:** 10
**Page:** 1
### Author:  [@curiousvi](https://tradingqna.com/u/curiousvi)
#### Post date: [July 22, 2024, 11:02am UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479/1 "2024-07-22T11:02:44Z")
> **[Your demat account will become inactive when this happens](https://economictimes.indiatimes.com/wealth/invest/your-demat-account-will-become-inactive-when-this-happens/articleshow/106311187.cms?from=mdr)**
>
> An trading and demat account is most required for purchasing and selling and holding shares. However the trading and demat account could become dormant if there are sustained periods of inactivity. And no trade can be made through an dormant trading...
As per article - if the account is not more than 24 months inactive/dormant - client does not need to do the rekyc/ipv -
if it is between 12 to 24 months - only otp based verification is required - no ipv or rekyc is required.
But it does not say if its inactive for less than 12 months - what is required ? @ShubhS9
and each broker can make their own rules about this or they must follow a standard rule suggested by SEBI as per the article above.
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### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [July 22, 2024, 12:38pm UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479/2 "2024-07-22T12:38:00Z")
> [@curiousvi](#):
>
> But it does not say if its inactive for less than 12 months - what is required ? @ShubhS9
In this case, the account will not be marked inactive, you can continue to trade without any interruptions.
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### Author:  [@curiousvi](https://tradingqna.com/u/curiousvi)
#### Post date: [July 23, 2024, 4:53pm UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479/3 "2024-07-23T16:53:45Z")
So with Zerodha if the ac is inactive between 12 to 24 months - do you need IPV / rekyc?
I understand after 24 months SEBI requires brokers to do ipv/rekyc
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### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [July 24, 2024, 4:50am UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479/4 "2024-07-24T04:50:10Z")
> [@curiousvi](#):
>
> So with Zerodha if the ac is inactive between 12 to 24 months - do you need IPV / rekyc?
> I understand after 24 months SEBI requires brokers to do ipv/rekyc
Yes, at Zerodha, you will have to do Re-KYC and IPV if the account is marked inactive after 12 months.
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### Author:  [@curiousvi](https://tradingqna.com/u/curiousvi)
#### Post date: [July 24, 2024, 7:04am UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479/5 "2024-07-24T07:04:58Z")
So brokers can make their own rules ? I think SEBI mandates re-kyc and ipv only after 24 months?
If am correct about SEBI rule - what is the reason why you ask for unnecessary steps for clients to follow ? is not it a type of harassment particularly for elderly?
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### Author:  [@curiousvi](https://tradingqna.com/u/curiousvi)
#### Post date: [July 26, 2024, 6:57am UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479/6 "2024-07-26T06:57:17Z")
?? @nithin
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### Author:  [@curiousvi](https://tradingqna.com/u/curiousvi)
#### Post date: [July 31, 2024, 12:19pm UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479/7 "2024-07-31T12:19:18Z")
> **[INSP49743.pdf](https://archives.nseindia.com/content/circulars/INSP49743.pdf)**
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### Author:  [@VenuMadhav](https://tradingqna.com/u/VenuMadhav)
#### Post date: [July 31, 2024, 12:43pm UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479/8 "2024-07-31T12:43:06Z")
> [@curiousvi](#):
>
> So brokers can make their own rules ?
Not necessarily. While SEBI lays down the guidelines for markets to follow, I don’t think it’s wrong if a broker applies their own policies further. For example, SEBI/Exchanges state that minimum margins have to be collected from clients, this does not restrict the broker from charging margins higher than the minimum margins as a risk containment measure. Likewise, it’s for the safety of our client’s accounts that we insist on IPV after 12 months of inactivity which we believe is a fair ask.
> [@curiousvi](#):
>
> is not it a type of harassment particularly for elderly?
Do DM me the ID on which you’re trying to get the rekyc done, we’ll help.
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### Author:  [@curiousvi](https://tradingqna.com/u/curiousvi)
#### Post date: [July 31, 2024, 1:02pm UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479/9 "2024-07-31T13:02:43Z")
Here is what I copy/paste from the file I attached above ( I believe you did not care to read it)
It has come to the notice of the Exchange that members are seeking re-KYC and IPV from clients even if the clients are requesting for activation of their inactive account within 12 months from the date of marking the client account as inactive i.e. within 2 years from their last trading date. It has also come to the notice of the Exchange that members are urging clients to trade to prevent accounts from being flagged as inactive, referring to the above-mentioned circulars.
In view of the same, it is reiterated that while member shall flag the client as inactive in UCC database of the Exchange in case clients have not traded in the last 12 months, fresh documentation, due diligence and IPV should be undertaken only when the client seeks reactivation after a period of 1 year of being flagged as inactive i.e. after 2 years from their last trading date. Further, no communication seeking clients to trade in order to prevent accounts from being flagged inactive should be sent.
**All members are advised to take note of the above and strictly comply with the same.**
So if I understand it correctly - it specifically directs members(brokers) to **COMPLY**
For margin exchange does not strictly say **COMPLY**
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### Author:  [@VenuMadhav](https://tradingqna.com/u/VenuMadhav)
#### Post date: [July 31, 2024, 3:18pm UTC](https://tradingqna.com/t/is-this-article-from-economic-times-correct/170479/10 "2024-07-31T15:18:41Z")
I’ve looked at the circular in the past, and I don’t necessarily believe what we’re doing is wrong.
As I’ve said, please dm me the client ID for which you’re trying to get the reKYC done and we’ll help.