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How to Close a Demat Account: A Step-by-Step Guide

Submitted by admin on April 11th, 2025

Shares, together with securities, can be held electronically through Demat account systems. People need to close their Demat accounts through a simple procedure, whether their trading needs end or they move brokers, or want to decrease their maintenance fees. Following the appropriate steps will make it simple to close your Demat account.

Reasons to Close a Demat Account

• Several typical circumstances lead investors to cancel their Demat account access.
• The account holders have stopped both trading activities and investments.
• Multiple Demat account shareholders want to mutually combine all their accounts into one central location.
• High annual maintenance charges (AMC).

Moving to a broker who offers reduced costs and superior service constitutes another reason to close a Demat account.

Step-by-Step Process to Close a Demat Account

Clear All Dues and Holdings

• As per closing account requirements, you need to ensure two things until the account is ready for closure.
• An empty balance and no outstanding dues exist in the Demat account.
• All stock units held in the Demat account need to be either sold or moved to another Demat account.
• To transfer existing holdings in your account, you need to use a Delivery Instruction Slip (DIS) which will move contents to another Demat account.

Download or Collect the Account Closure Form

• There exist two methods to obtain the Demat account closure form.
• You can obtain this form through the website of your Depository Participant either from Zerodha or ICICI Direct or HDFC Securities alongside other suitable platforms.
• You can acquire the form directly from your Demat account provider’s physical branch office.

Fill Out the Form

Provide details such as:

• Your name and DP ID/client ID.
• Reason for closing the account.
• Signature of all account holders (in case of a joint account). When holding securities for transfer you must include account information and enclose the Client Master Report of the receiving Demat account.

Submit the Form with Required Documents

Once the form is filled:

• Submit it along with a copy of your PAN card and proof of identity (like Aadhaar or driving license).
• Submit unused DIS slips if any.
• If you’re transferring securities, attach a CMR of the new account.

Verification by the DP

Your DP will verify the details and process your request. This usually takes 7–10 working days. You’ll receive a confirmation via SMS or email once the account is closed.

Important Tips

• You cannot close your Demat account online unless your broker offers e-sign based digital closure (not available everywhere).
• Make sure you keep proof of submission.
• If it’s a joint account, all holders must sign the form.
• Once closed, you will not be charged any AMC further.

Final Thoughts

Closing a Demat account is a simple process, but you must do it properly to avoid future charges or complications. If you’re moving to a new broker, it’s always better to transfer your holdings first and then request for account closure. Keep track of the closure confirmation to ensure that the account is officially deactivated.

Call: +91 7980522404 to know more on it.

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