Financial Awareness Level
How to Close a Demat Account Online?
A Demat account is essential for holding and trading securities electronically. However, if you no longer use it, closing the account is important to avoid unnecessary maintenance charges. This guide explains how to close your Demat account online, the required documents, and key considerations.
Can You Close a Demat Account Online?
Yes, some Depository Participants (DPs) allow online account closure, while others require a physical request.
Steps to Close a Demat Account Online
1. Check for Pending Transactions
- Ensure no pending trades or unsettled transactions.
- Transfer remaining securities to another Demat account or sell them.
2. Download the Demat Account Closure Form
- Visit your broker’s website or NSDL/CDSL portals.
- Search for ‘Demat Account Closure Form’.
- Fill in details like DP ID, Client ID, and reason for closure.
3. Submit the Closure Request
- Upload the filled and signed closure form via the broker’s portal.
- Attach self-attested PAN, Aadhaar, and latest account statement.
- Some brokers require e-signature (Aadhaar-based OTP verification).
4. Verification & Account Closure
- The DP will verify your request within 7-10 business days.
- A confirmation email/SMS will be sent after successful closure.
Offline Method to Close a Demat Account
- Visit your DP’s branch and submit a physical closure form.
- Provide KYC documents and account details.
- Obtain an acknowledgment receipt for tracking.
Key Considerations Before Closing a Demat Account
- Clear all dues & AMC charges before submitting the request.
- Download holding and transaction statements for future reference.
- Nominee updates or pending corporate actions should be settled.
- Joint accounts require signatures of all holders for closure.
Conclusion
Closing a Demat account online is simple if there are no pending holdings or dues. Follow the correct procedure to avoid unnecessary delays and charges.
By following this guide, investors can easily close their Demat account online and avoid unnecessary charges.
For further details check here:
e-Guide for Demat Account Holders
What is a Mutual Fund? - Beginner's Guide to Investing
AMFI - Introduction to Mutual Funds
Disclaimer:
The information is for general purposes only and not an investment advice. Readers should seek professional advice before taking any investment related decisions.
FAQ Section
How long does it take to close a Demat account?
Typically 7-10 business days after submitting the request.
Can I close my Demat account online?
Yes, if your DP supports online closure via e-signature.
Is there a fee for closing a Demat account?
No, Demat account closure is free, but pending dues must be cleared.
What happens if I don’t close my unused Demat account?
You will be charged annual maintenance fees (AMC) even if unused.
Can I reopen my Demat account after closing?
No, a new account must be opened with fresh KYC.
What happens to my shares when I close my Demat account?
You must sell or transfer securities before closing the account.
How do I check if my Demat account is closed?
You will receive a confirmation email/SMS from your DP.
Can I close my Demat account with outstanding dues?
No, all dues must be cleared before closure.
Do I need to visit my broker’s office to close my Demat account?
Only if the broker does not support online closure.
Can I close my trading account but keep my Demat account?
Yes, trading and Demat accounts can be closed separately.
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Disclaimer
An Investor Education And Awareness Initiative Visit https://www.hdfcfund.com/information/key-know-how to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website (www.sebi.gov.in/intermediaries.html). For any queries, complaints & grievance redressal, investors may reach out to the AMCs and / or Investor Relations Officers. Additionally, investors may also lodge complaints directly with the AMCs. if they are not satisfied with the resolutions given by AMCs, they may raise complaint through the SCORES portal on https://scores.sebi.gov.in/scores-home/. SCORES portal facilitates investors to lodge complaint online with SEBI and subsequently view its status. In case the investor is not satisfied with the resolution of the complaints raised directly with the AMCs or through the SCORES portal, they may file any complaint on the Smart ODR on https://smartodr.in/login.
