When you are interested in the share market the first thing what you do is open a demat account to invest or trade. But as time passes we forget or don’t have time for trading. Then there is time you do not use your Demat account for a long time but you have to pay the charges and the demat account annually. It is the right time or good idea to close your inactive demat account. If there are active balances, they can be consolidated into one account and remaining redundant demat accounts can be closed. Closing a Demat account involves visiting the DP office or branch by any Demat account holders & submission of requisite forms & documents.
Required Information for Closing Demat Account:
- DP ID & Client ID
- KYC detail
- Reason for closing Demat account
- Is there more than one person holding the demat account ? then all holders must sign a closure form.
Procedure Of Closing Demat Account:
1. FORM:
The account holder can download the form from the website of the depository participants or DP.
2. DETAILS:
The following details need to be mentioned:
- DP ID and Client ID
- Existing details like name & address – it should match records.
3. Transfer:
If the demat account has any balance (holdings), details of the account to which this balance needs to be transferred must be mentioned in the form. The transfer can also be carried out by filling up a delivery instruction slip (DIS) before closure of the account.
4. There are no shares in the account:
To close your account, the foremost thing is to ensure whether there are any shares in the account. If there are, you need to transfer them to another account. You need to make sure your Demat account is empty before you can decide to close it.
5. Submit The Application:
Once the form is submitted and is in order, it takes 7 to 10 business days to close the account.
Remember to this point before closing the Demat account:
- If the account has any negative cash balance, it must be settled before submitting the request for its closure.
- Unused delivery instruction booklet slip should be submitted back to the DP.
