You are aware of the fact that you need to pay Annual and maintenance fees for Demat accounts. It’s a good idea to close any Demat accounts that are inactive or have a zero balance.
If active balances exist, they can be combined into a single account. And the remaining Demat accounts can be canceled.
How To Close Demat Account?
Steps to Close Demat Account:
Step 1: Firstly, you have to get the Company’s Account closing form. You have to get the form either from the company’s official website or from their branch office.
Step 2: After taking the closing form, you have to fill in all the necessary details. According to the Company’s requirements, they may fill it either online or offline.
Step 3: Then you need to submit the form to the company’s Depository Participant (DP) office.
Step 4: Some companies allow you to send the closure proposal online through email.
Step 5: Within 7-10 business days, your Demat account will be closed.
Demat Account Closure Forms
- In most companies, you have to get the form from the company’s official website. You have to print it out.
- While some of the companies also offer offline account closure forms.
- After that, you have to fill the form.
- You have to mention your name, address, identification, DP Id, Client id, etc.
- You also have to mention the reason for the cancellation of the Demat Account.
- Then, the account holder needs to sign the form. If it is a joint account, then all the account holders have to put their signature.
- Now, you need to submit the form to the company’s head office.
- If an online service is available, then you can also submit the closure request through email.
- After submission, within 7-10 days your account will be closed.
Also Read: Types of Demat Account
Demat Account Closure Charges
You will not be required to pay any money for closing the Demat Account. It’s completely free of cost.
Don’t pay if somebody asks for money also. Instead, complain in the company’s office.
Things To Do Before Closing The Demat Account
You must take care of the following things before closing your Demat account-
- In case you possess any shares in your account, you must sell or transfer all the available amounts before closing the Demat account.
- If there is a negative cash balance on the account, it must be resolved before the closure request is made.
- Delivery guide booklet slips that have not been utilized must be returned to the DP.
- You must be careful when filling out the form’s details. Because any incorrect entry can result in your account being closed.
Frequently Asked Questions
Can I Close My Demat Account Online?
It depends on your bank or company. If your company offers the facility to close a Demat account online, then you can close it offline. The most used online way of closing the Demat account is via email.
Is It Possible To Shut My Trading Account Without Also Closing My Depository Account?
You cannot close your Demat account while maintaining your trading account. At least one Demat account must be linked to the trading account. Even if you don’t trade, you’ll need a Demat account.
Is It Possible To Reopen A Demat Account That Was Previously Closed?
To revive your Demat account, you’ll need to fill out a reactivation form. You have to provide Know Your Customers (KYC) information such as address proof and confirmation of identification. Your DP will also double-check that your signatures match those on the original documents. To revive it, your DP may impose a fee.
