The Process To Close A Demat Account

A Demat Account, also known as a Dematerialized Account, allows for the electronic keeping of shares and assets. Once you open a Demat Account, you can acquire stocks or assets while online trading and keep them in a Demat Account. Have you ever wondered what you would do if you had many Demat accounts and wanted to close one or all of them because you want to change your trading pattern in the share market? This article covers in detail how to close a Demat Account.

Different Methods For Closing Demat Accounts

Closing of Account

The investor can quickly submit a closure request to the depository participant if there are no holdings in the Demat account and all payments have been paid.

Investors must take the following actions to close the account –

• Use the closure form to your advantage.
• Return the completed closure form to the closest branch after signing it.
• You can also mail the HO a form that has been filled out and is signed.

Account Closure and Transfer

The investor must, however, take the following actions if all payments have been paid and the Demat account contains securities that need to be transferred to another Demat account –

• Use the closure form to your advantage.
• To transfer the shares to another Account, fully complete the Delivery Instruction Slip (DIS).
• Obtain a duplicate of the original Client Master List (CML), which includes targets’ –
  • Logo
  • Stamp
  • Signature 
• Send all supporting documentation to the nearby branch.
• Alternatively, mail the completed and signed paperwork to the main office.
• After receiving all relevant documentation, the account will be closed in the following five working days.

Necessary Documentation Check-List

• All debts have been fully settled.
• Every form has been filled out and signed.
• All account holders have signed if there are joint accounts.

How Can A Demat Account Be Closed?

Shutting an already open Demat Account differs significantly from closing a trading account.

Following is the process of how to close the Demat Account –

• You must visit the office of the Depository Participant and submit a Demat account closure form with the required paperwork if you want to close or terminate your Demat account.
• The website of the Depository Participant also offers a download for this closure form.
• You must submit the DP ID and Client ID with the Demat account closing form.
• Details like your name and address should be included on the Demat account closure form since they must match the data kept by NSDL or CDSL, depending on the situation.
• Submission of the reason for what led to the account being closed?
• The necessary sections of the form must be signed.
• Remember that all account holders must sign the closure request form if you have a joint account.
• However, the closure request form cannot be signed by the POA holder.
• The complete process of shutting the account takes roughly 7 to 10 business days after filing the account closure form.
• When you close the account, the depository doesn’t charge you anything.
• It would be excellent if you were to keep in mind that the Demat account closure is subject to the stipulation that there should be no outstanding fees from your end for the account.
• It typically takes 15 to 30 working days for verification and processing to shut down your Demat account.

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Conclusion

Sometimes it becomes difficult to maintain an active Demat account or keep track of it.

Therefore, it is better to close the account if you think you won’t want to engage in the securities market shortly and you don’t possess Demat stocks using the above-mentioned method.

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