How to close Demat Account?
Almost everyone knows how to open a demat account but few know how to close a demat account. To save on the annual maintenance charges it would be prudent to close your idle demat accounts.
So how to close a Demat Account? To close a demat account, you must ensure that there are no shares in your demat account and it must not have a negative balance. Then download the demat account closure form from the depository’s website and then submit the form to the depository. Your demat account will be closed within a week.
When you look in on share trading from outside, it seems like such a smooth ride, doesn’t it?
However, once you start investing in shares, you realize the amount of paperwork and technicalities you need to take care of before you can actually buy or sell.
Frankly, it’s a little irritating sometimes.
That is why I’m writing this blog today; to tell you how to take care of these seemingly meaningless but actually very important technicalities.
I’ll be telling you how you can close your demat account today.
I’m not going to insult your intelligence by asking whether you know what a demat account is.
After all, almost every trader, investor and amateur have at least one demat account nowadays.
You need a demat or depository account in order to buy or sell shares. When you buy, you stock broker transfers the shares to your depository account. When you sell, your shares get transferred to your broker’s account.
There’s a very common problem that many investors face. They end up opening multiple demat account without realizing that there is an annual fee for each account.
Procedure of closing a Demat account:
Step 1: Find who is your Depository
There are only two depositories in India, NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited)
Step 2: Download account closure form
You can download this form by visiting your broker or depository website.
I’ve attached a photo of a demat closure form to give you an idea of what to expect.
Step 3: Make sure that there are no shares in the account
In order to close your account, the first thing you need to ensure is whether there are any shares in the account. If there are, you will need to transfer them to another account.
You need to make sure your demat account is empty before you can consider closing it.
Step 4: No negative cash balance
Negative cash balance can arise due to non-payment of annual maintenance fees or any other charges. If you request for an account closure without settling your account, your application can be rejected.
Step 5: Submit the application
You will also have to mention the details of the new depository account, if any and a few other details.
Once this request is submitted successfully, the depository takes about 4-6 working days to complete the process.
How to Close Demat Account – Broker Specific
How to close Demat account in HDFC – Click Here
How to close Demat account in ICICI – Click Here
How to close Demat account in Axis – Click Here
How to close Demat account in SBI – Click Here
How to close Demat account in Zerodha – Click Here
How to close Demat account in Upstox – Click Here
How to close Demat account in Sharekhan – Click Here
Conclusion: How to close Demat Account?
Sounds simple enough, right?
It generally is.
Once you know what to do, it’s a matter of filling the forms correctly.
Well, that is all I had to say about how to close a demat account. If you would like to add something or express your opinion, feel free to leave a comment.
Happy trading!
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