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How to Freeze Or Unfreeze Stocks in the Demat Account

29 Nov 2023

Introduction

  • When it comes to managing your investments, having control is essential. That’s where the power of freezing and unfreezing stocks in your DEMAT account comes in. 
  • It feels good to know that you can temporarily pause the sale of your securities or resume trading at your command. Whether you want to safeguard your portfolio during uncertain times or preserve specific stocks for future opportunities, this guide will prove to be extremely helpful. 
  • Take charge of your investments, protect your assets, and navigate the dynamic world of trading with confidence.
  • Let’s explore how you can freeze or unfreeze your securities in your DEMAT account. 

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What Does Freezing or Unfreezing the Stocks in a DEMAT Account Mean?

  • The terms 'freezing' or 'unfreezing' stocks in a DEMAT account refer to the process of temporarily restricting or releasing the ability to trade those securities.
  • When stocks are frozen, they cannot be sold or transferred to another DEMAT account, thereby ensuring their security. 
  • Unfreezing, on the other hand, allows normal trading to resume. This feature enables investors to exercise control over their investments by preventing unauthorised transactions or preserving specific stocks for a certain period.
  • It's a valuable tool to safeguard investments and manage trading activities effectively within the DEMAT account framework. 

How Do I Freeze or Unfreeze the Stocks in My DEMAT Account?

  • You can safeguard your investments by temporarily preventing the sale of your stocks or easily regain control by requesting an unfreeze.
  • For this, you need to fill out the freeze or unfreeze request form, sign it physically, and send it to the office of your DEMAT account.
  • You can also print the freeze or unfreeze request form, electronically sign it, and submit it via our ticketing system. 

How Do I Fill Out the Freeze or Unfreeze Request Form?

To fill out the freeze or unfreeze request form, please follow the instructions below:

  1. Insert the date.
  2. Select 'Freeze' if you wish to freeze the stocks or 'Unfreeze' to reverse the freeze. 
  3. Tick 'BO Account' if you want to freeze the entire DEMAT account, or tick 'BO ISIN' if specific stocks need to be frozen or unfrozen. 
  4. Enter the DP ID and client ID.
  5. Enter the names of the account holders. 
  6. Enter the ISIN, stock name, and quantity to be frozen or unfrozen. 
  7. Tick 'Debt' to freeze stocks and prevent their sale, or tick 'Credit' to freeze stocks and prohibit additional purchases. Tick 'Both' to freeze both the debit and credit of the stock.
  8. Tick 'Current' for an immediate freeze or unfreeze, or tick 'Future' for a later date. If you are selecting a future date, provide a freeze activation date. 
  9. Provide reasons and additional remarks for the freeze or unfreeze, which will be recorded in the DEMAT standard.  
  10. Enter the names and signatures of all the account holders involved. 

What Are the Points to Remember When Freezing or Unfreezing the Stocks in My DEMAT Account?

You need to remember the following things about freezing or unfreezing the stocks in your DEMAT account:

  • The freeze or unfreeze request will be handled within 72 working hours. 
  • No fees are applicable for freezing or unfreezing securities. 
  • All securities in your DEMAT account, such as stocks, mutual funds, and G-secs, can be frozen unless subject to a mandatory lock-in period. Once securities are frozen, they cannot be transferred to another DEMAT account. 

Conclusion

  • To sum up, when you know how to freeze or unfreeze stocks, you gain an invaluable tool to safeguard your investments and take control of your financial journey. 
  • This flexibility empowers you to make strategic decisions, protect your assets during market volatility, and seize opportunities when the time is right. 
  • Remember, the ability to pause or resume trading at your discretion puts you in the driver’s seat, ensuring your portfolio aligns with your investment goals. 
  • So, embrace the power of freezing and unfreezing stocks and embark on a path of informed decision-making that can lead to long-term financial success.

 

Related Articles: Want to Open a Demat Account? Here's What You Should Know | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account 

 

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