Rising dormant demat accounts pose risk to system: experts
A sharp decline in active retail market participation in India has led to a surge in dormant demat accounts, raising concerns about systemic security. Experts warn that these inactive accounts are vulnerable to fraud and mule activities, necessitating better oversight.
Why it matters
The security of dormant financial accounts is critical to maintaining trust in digital depository frameworks and preventing large-scale financial crime.
India’s retail investing boom seems to be beginning to show signs of decline, with a sharp fall in active market participation by this segment raising concerns over the quality of investor growth and the risks posed by dormant demat accounts to the system.
The article relies on expert analysis and industry data to highlight a structural market concern.
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