Do you want to continue trading stocks but your CDS account is dormant?
In this blog post,I will work you through the process of re-activation of the dormant CDS account numbers in Kenya.
If you want an alternative way to trade stocks, you can do so through trading with Hotforex.
I use Hot forex to trade forex, commodities, Indexes and stocks.
Nevertheless, you should make sure that your CDS account is active because you never know when you have to use it next time.
What makes an account dormant?
To explain this question in an easy to understand way, we will be using the provision from the CDSC website.
It’s important that we get to understand what makes a CDS account dormant in the first place so that we can avoid the same issues in the future.
(1) CDSC shall declare an account dormant if there has been no activity in that account for a continuous period of twenty four calendar months.
What does that mean? It means that if you have not bought or sold shares with your account for the last two years, the account will be closed.
For that reason, you need to be adding into your account on regular basis and or use it for transaction in order to keep it active.
(2) An account shall be flagged dormant at the end of the day on which the account is due for declaration of dormancy.
You will notice your account to be dormant in exactly two years of inactivity.
(3) Upon declaration of dormancy on an account, CDSC shall send a notification to the account holder informing them of the declaration.
This process will not be done without your knowledge, the CDSC will inform you that your account is declared dormant on the very day that it does so.
24B No transactions shall be effected on an account that has been declared dormant in accordance with Rule 24A.
With a dormant account, there is nothing you can do with it, thought your assets will be kept save and intact, you will not lose what is in the account already, you can just not be able to do further transactions with the account.
Now that you have learned what makes a CDS account dormant, we can proceed to the main agenda of the day.
Are you ready?
How to activate a dormant CDS account
I have reduced the process of how to re-activate a dominant CDS account numbers in Kenya to make it easy to understand and to recall.
The process is not a rocket science but a simple step by step process that you can follow today with your phone and internet connection.
a; Activate your dormant CDS account through the client’s online portal
Visit the CDSC website and re-activate your dormant CDS account via the site’s client’s online portal.
You can also download the CDSC mobile application and login your details and you will be able to re-activate your dormant CDS account in Kenya.
An account holder may also re-activate their dormant CDS account via the client’s online portal on the CDSC website or through the CDSC Mobile application.
Once you login to the website or mobile application, follow the procedures outlined in the platform and you will be able to submit the application for re-activation of a dormant CDS account in Kenya.
b) submit written instructions to CDSC
Once you have submitted a request for re-activation of a dormant CDS account through the online platform you should also submit the following documents;
1; Copy of identification documents
2; Written documents giving instructions to their CDS agents to open the account.
The agent will verify the documents and the instructions given by the account holder and submit them to the CDSC for confirmation.
This will also prompt the CDSC to complete the re-activation process for the client.
Within the next 24 hrs, the CDSC will be done with your re-activation request and will have send the information to your mobile app.
It is important to keep your CDS account active to enable you to trade stocks in Kenya whenever you need to.
This post have discussed how to re-activate dormant CDS account numbers in Kenya in a two step process that can be followed by anyone with a dormant CDS account.
Should you need additional information, you can visit the CDSC website to learn more about how to re-activate a dominant CDS account in Kenya.
You can also visit your bank or broker and let them guide you on a step by step process of how to re-activate a dominant CDS account in Kenya.