Hi friends hope you are doing well, today we will talk about How to close a Demat Account, How to close a Demat Account online, Close a Demat Account, Close a Demat
There is an annual fee and maintenance charge to be paid on the demat account, so it is better that you close your old inactive and zero balance demat account. If these accounts also have an active balance, then they can be clubbed into a single account and the remaining accounts can be closed.
So you have decided that you want to close your demat account with your stockbroker. OK, it is possible for this to happen. Sometimes trading in the stock market can be a very painful and exhausting experience.
Compared to opening an account, closing an account can be a tedious task in itself. For example, when you have expressed your desire to open your account, your stockbroker may have called you several times, asking for an appointment, no matter how far away you live.
On the other hand, while closing the account, you have to either send your documents by courier/post or personally visit the stockbroker’s office and give them.
Things to note while closing your Demat account
- There should not be any shares in the demat account you want to close. Either you have to sell the shares held in it or you will have to transfer it to another demat account. You can also get the units of your shares converted back to physical form. This is called rematerialisation.
- There should not be any outstanding charges in your account.
- You also have to return your unused delivery instruction slip to your DP.
As soon as you complete all these formalities, after that either by sending your papers by courier or by visiting the stock broker’s office yourself, you have to apply for closure of your account. This process takes 2 – 3 business days to complete.
Do remember that apart from your balance outstanding charges, there are no additional charges for closing the demat account.
If you have any other demat account then you can transfer your shares to that also. You can fill all the required information in the DIS slip and submit it to your existing DP i.e. Depository Participant and at the same time inform your new DP about the upcoming shares. This process usually takes 3 to 5 business days to complete.
Close a Demat Account offline
To close a demat account, you need to visit the DP office or the branch concerned with your demat account and submit the required forms and documents.
Application Form
Account holders can download the form for this from the website of the Depository Participant (DP).
Details
The following details have to be mentioned in this form:
1. DP ID and Client ID
2. Name and address given on record
3. Reason for closure of account For this the account holder has to sign the closure request form.
Transfer
If there is some balance in the demat account, then it is necessary to give the details of which account to transfer it. This transfer can be done by filling the delivery instruction slip before the account is closed.
Process
Once the form is submitted correctly, this account will be closed in 7 to 10 working days.
Charges
No charge is levied when the account is closed.
Close a Demat Account Online
Most brokerage websites let you close your account online, but others may request that you also submit a letter in person to request closure. So, go through the entire closure process carefully beforehand so that you are ready. First, check if your brokerage provides any official closure forms. It can be downloaded from the website of your brokerage. This form will require that you fill out all of your personal identification and account identification information. This way your brokerage can ensure that it is you and not an unknown third party requesting account closure.
You can request closure by email or through your brokerage firm’s website. Submit the duly signed closure form and any required paperwork.
Usually, you need to carry all the following documents and information with you which will be submitted along with your closure form.
- Your Demat Account ID as well as your DP ID
- Your KYC details such as your name and address should match with those in your account records.
- Your reason for closing your account at this time.
- An attested and self-attested copy of identity proof such as Aadhaar, PAN, or Passport. This may vary depending on the brokerage.
Submit all this information online or in person at the nearest branch of your brokerage. This will vary depending on your brokerage, but the process is usually offline.
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