You are aware that Demat accounts require you to pay annual and maintenance fees. Any Demat accounts that are inactive or have a zero balance should be closed.
If there are any active balances, they can be merged into a single account. The rest of the Demat accounts can be closed.
How to Close Demat Account?
- How to Close Demat Account?
- Demat Account Closure Forms
- Demat Account Closure Charges
- Things to do Before Closing the Demat Account
- Frequently Asked Questions
How to Cancel Your Demat Account:
First, you must obtain the Company’s Account Closing Form. The form can be obtained via the company’s official website or a local branch office.
Step 2: After completing the closing form, you must fill in all required information. They can fill it out online or offline, depending on the needs of the company.
Step 3: Finally, you must send the form to the Depository Participant (DP) office of the corporation.
Step 4: You may be able to send the closure proposal through email to some companies.
Step 5: Your Demat account will be closed within 7-10 business days.
Demat Account Closure Forms
- Most companies require you to obtain the paperwork from their official website. You’ll need to print it.
- Several businesses also provide offline account closing forms.
- Following that, you must complete the form.
- You must include your name, address, identification, DP Id, Client Id, and other pertinent information.
- You also have to mention the reason for the cancellation of the Demat Account.
- The account holder must then sign the document. If the account is a joint one, all of the account holders must sign it.
- Now you must send the form to the company’s headquarters.
- If an online option is provided, you can also send an email to request closure.
- Your account will be closed within 7-10 days of submission.
Also Read: Demat Account Types
Demat Account Closure Charges
There will be no charges associated with closing the Demat Account. It is entirely free of charge.
If someone asks for money, do not pay. Instead, go to the company’s office and complain.
Things to do Before Closing the Demat Account
Before closing your Demat account, you must take the following steps:
- If you have any shares in your Demat account, you must sell or transfer all of the available funds before terminating it.
- If the account has a negative cash balance, it must be addressed before the closure request may be submitted.
- Any booklet slips from the delivery guide that have not been used must be returned to the DP.
- When filling out the details of the forms, you must be cautious. Because any mistake can lead to your account being closed.
Frequently Asked Questions
Can I close my Demat account online?
That is dependent on your bank or business. If your firm allows you to close a Demat account online, you can close it offline as well. Email is the most popular method of cancelling a Demat account online.
Is it possible to shut my trading account without also closing my depository account?
You can’t terminate your Demat account and keep your trading account open at the same time. A trading account must be linked to at least one Demat account. You’ll need a Demat account even if you don’t trade.
Is it possible to reopen a Demat account that was previously closed?
You’ll need to fill out a reactivation form to reactivate your Demat account. You must supply Know Your Customers (KYC) information, such as proof of address and identification confirmation. Your DP will also double-check your signatures to ensure they match those on the original paperwork. Your DP may charge a fee to revive it.