– Ever wondered how to close a Demat account?– Learn the step-by-step process to close your account efficiently and avoid unnecessary charges.
How to Close a Demat Account
What is a Demat Account?
– A Demat account holds securities like shares and bonds in electronic form.– Essential for seamless trading, but dormant accounts can incur unnecessary fees.
How to Close a Demat Account
Why Close a Demat Account?
– Inactive trading habits.– High maintenance fees.– Consolidating multiple accounts.– Switching to a new broker.
How to Close a Demat Account
Step 1 - Check Account Status
– Clear all dues.– Transfer holdings or sell securities.– Ensure no unsettled transactions.
How to Close a Demat Account
Step 2 - Obtain and Fill the Closure Form
– Download the closure form from your DP's website or visit their office.– Fill in details like
– Name and account number.– Reason for closure.– New account details (if transferring holdings).
– Submit the form and documents via courier or in person.– Some DPs offer online account closure.– Receive a confirmation email or message upon successful closure.
How to Close a Demat Account
Key Points to Remember
– Ensure zero balance in your account.– Close inactive accounts to avoid dormancy fees.– Update or close linked trading or bank accounts.