Not using your demat account and looking forward to the process of how to close the demat account. If yes, then here is the complete procedure that makes it easier for you to delete your existing demat account.
How to Close Demat Account Online?
Closing a demat account is not as simple as opening, as there is no direct online method to complete the process. However, you can download the form from the broker’s website.
Also, there are two different things to be considered while you apply for closing a demat account:
- Closing Demat Account Without Holdings
- Demat Account Closure With Holdings
The former process is when you choose to close a dormant demat account and the latter is where you switched to another stockbroker and wants to close your existing account.
So, let’s talk about both aspects and guide you with your account closure process.
How to Close Demat Account Without Holdings?
The unused demat account is always expensive as you have to pay the annual maintenance charges to your stockbroker. Now in order to prevent the cost of the demat account with no shareholdings, let’s have a quick look at the steps:
- Visit the stockbroker website and download the form.
- Fill in all the details and attach the KYC documents for verification.
- Sign the form wherever required. In case of multiple holders make sure that all the holders sign the form.
- Make sure that there is no share in the account or the pending dues. You can easily check it by logging in to your account.
- Submit the form to the nearest branch or send it via courier to the branch office.
You can follow this step if you place the account closure request after selling off all the holdings.
How to Close Demat Account With Holdings?
Another case is when you have an active demat account with any stockbroker but due to unsatisfactory services now you want to switch your account.
Here again, it become important to close your existing demat account. For this, you have to follow the steps of transferring shares and then closing them using the steps defined above.
- Visit the CDSL or NSDL demat account and register yourself for inter or intra-depository share transfer.
- Submit the intra-DIS slip and select the option of off-market transfer of shares.
- Once done you will receive the original CMS (Client Master List) with logo, stamp, and signature.
- Now fill in the details of shares you want to transfer with the ISIN details.
- Attach the KYC detail and sign the form wherever required.
- Now submit the form to your stockbroker either physically or via courier.
The account closure process generally takes 7-10 business days.
Conclusion
This is the complete process of closing the demat account with the respective stockbroker. Just make sure you clear all the dues and sell or transfer your holdings before placing the request.
Hope it helps you to clear your query of how to close a demat account. For more query or questions around share market trading, just fill in your details in the form below:
