Demat Account

[Prashant505]

Greetings Everyone, During COVID I wanted to invest in mutual funds. I thought of investing through Groww.
By mistake I opened demat account but never used it as it was not required for mutual funds.
Could you tell me what happens to such demat account which is never used?
Thanks

 

[ShavirB]

Greetings Everyone, During COVID I wanted to invest in mutual funds. I thought of investing through Groww.
By mistake I opened demat account but never used it as it was not required for mutual funds.
Could you tell me what happens to such demat account which is never used?
Thanks

The account would've become dormant by now. There will be no issue per say, but if there is some negative balance in your account - it may cause your CIBIL Score to drop by a few points (the exact correlation between Negative Balance and CIBIL is still unknown).

The only issue will be your broker bombarding with mails and messages to either regularise the account or clear the negative balance.

 

[Prashant505]

The account would've become dormant by now. There will be no issue per say, but if there is some negative balance in your account - it may cause your CIBIL Score to drop by a few points (the exact correlation between Negative Balance and CIBIL is still unknown).

The only issue will be your broker bombarding with mails and messages to either regularise the account or clear the negative balance.

Thanks Shavir for the reply. No there's no negative balance as I never even started.

 

[ShavirB]

Thanks Shavir for the reply. No there's no negative balance as I never even started.

Even though Groww does not levy maintenance charges, but would still advise you to check once. Additionally, sometimes there have been cases of scam/ fraud in unused demat accounts like yourself. Only for this reason, would advise you to close any unused accounts to avoid any such unforeseen circumstances.

 

[Prashant505]

Even though Groww does not levy maintenance charges, but would still advise you to check once. Additionally, sometimes there have been cases of scam/ fraud in unused demat accounts like yourself. Only for this reason, would advise you to close any unused accounts to avoid any such unforeseen circumstances.

Okay