Are you looking to close your Demat account but you don’t know can demat account be closed? The simple answer to this question is Yes. You can close your Demat account anytime without paying any extra charges for it.
Now the question is, how to close it? But before that, there are few things you should consider before closing your demat account.
Things to consider before closing your Demat account
There are a few things you must keep in mind before going ahead with closing your Demat account.
- Make sure you don’t have any shares present in the Demat account you wish to close. You will need to either sell them off or transfer them to a different account.
- In case, you can’t sell or transfer a particular share to a different account for some reason, rematerialize the shares into a physical form.
- Your Demat account balance must be nil. It should neither be positive nor negative. Clear your dues to make sure you don’t have any negative cash balance in your account.
- The unused delivery instruction slip (DIS) that you get after opening the account must be handed over back to your stockbroker.
How to Close Demat account?
Now that you know the answer to, can demat account be closed,the next question that comes to mind is how? Well, there is a fixed process that has to be followed in order for you to close your Demat account and it is not as seamless as the Demat account opening process. In fact, it can be a little tiresome but we know you must have a big reason behind coming to this decision.
- If you want to know how to close your demat account online, then the answer is that majority of the stockbrokers only let you close the demat account through an offline process.
- You will have to either visit the branch of your stockbroker or you can send the account closure form to them via courier.
- However, it all begins online when you download the account closure form by visiting the official website of your respective stockbroker.
Once you fill out the form with all the information like your customer ID, remaining balance, and the reason behind closing your Demat account, you submit it to your broker. It will then take a few days, usually around 7-10 days for your DP to close your Demat account.
But, is it necessary to close the demat account?
It is necessary if you are facing any of the problems given below.
- No longer involved or interested in trading
- Bad experience with the current stockbroker led to a switch to another DP
- Bad experience with the stock market itself, facing too much loss
- Mental and physical exhaustion
- Lack of time or money or both to invest
- Having to pay AMC for too many inactive Demat accounts
So, a demat account closure is necessary if you are facing any of the above problems.
We hope we have resolved your query through this answer. If you have further queries related to the stock market, you can fill in your details and we will try to resolve it as soon as possible.
