There are many fees and maintenance costs associated with demat accounts. As a result, all inactive or zero balance Demat accounts should be closed. People will lose money if they do not do so. As a result, it’s critical to understand How to Close Demat Account Online.
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How to Close Demat Account Online?
A demat account cannot be closed only by sending an online account closure form via email. You must submit an application in person, together with a physical copy of all required documentation.
Nevertheless, you may undoubtedly speed up the procedure by downloading the closure form online. The most important thing is that it is completely free, you don’t need to pay anything to close demat account.
Things to keep in mind before closing a Demat Account
Before checking out How to Close Demat Account Online, Always make sure you check & do these thing:
- Check to see whether there are any shares in the account.
- Close all F&O positions that are available.
- In your Demat account, there should be no assets. If there are any, simply sell them and withdraw the money.
- Check to see if their account has a negative balance. Confirm your account information by signing in to your account or contacting your registered branch.
- The account closure form can be downloaded from the stock broker’s website.
Process of Closing a Demat account
There are two ways to close a Demat Account :
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Closure of NIL Demat account
If the investor’s account has no pending payments or holdings, a request to cancel the Demat account online can be sent to the concerned depository partner (DP).
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Closure and transfers of shares from Demat account
If there are any outstanding shares that need to be transferred to another Demat account, the method is significantly different.
Steps of close demat account online (NIL)
Here are the major steps to close a Demat account with zero balance :
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Step 1
Visit the website of the stock broker you’re trading with and download the Demat account closure form.
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Step 2
Then carefully fill out the form and send it along with your KYC documents. Make certain that all of the proofs are correct. This stage entails delivering the forms and documentation to the nearest DPs office or mailing them to the relevant head office.
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Step 3
If the account is shared by more than one person, both must sign the closure form in the presence of a representative from their DP.
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Step 4
Ensure & reconfirm with the broker that there is no pending fee or charges from the stock broker side on this demat account as it will create an issue during closing of your Demat account.
Steps for Closure and transfers of shares from Demat account
Here are the major steps for closure and transfers of shares :
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Step 1
NSDL and CDSL are India’s two major depositories. An Intra DIS slip will be required for intra-depository transfers, and also the ‘Off-Market transfer option in the Demat account.
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Step 2
The account must next obtain the original CML (client master list) with the logo, stamp, and signatures.
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Step 3
The completed form must then be specified, along with important details and the names of the stocks you desire to transfer, as well as their ISINs. The target client’s ID, which is a 16-character code, will also need to be specified.
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Step 4
Following that, the paperwork must be either to your DP’s office or mailed to their corporate headquarters.
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Step 5
A branch official must additionally verify the self-attested Demat closure form before it may be closed.
Note:
To eliminate errors or lapses, the person’s details must be double-checked before transferring any stocks or accounts.
How much time will it take to close a Demat account?
Trading may be fantastic for some people and disappointing for others. It all comes down to personal experiences. You can cancel your Demat account at any moment. All you have to do now is make a decision.
However, Closing a Demat account is simple if you follow the guidelines carefully. Verification and processing of your request generally takes 15–30 working days to close your demat account.
Conclusion
Although Demat accounts cannot be completely closed online, the process of closing demat account can be simplified by completing the necessary paperwork online.
This is all from our side regarding How to Close Demat Account Online. However, if you have any doubts about close demat account online you can just comment below.
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Frequently Asked Questions About will Demat Account Close Automatically?
What happens if demat account is not closed?
After a certain period of time, your Demat account will be marked dormant (an inactive account). This indicates that you won't be able to conduct any trades with this account until you reactivate it.
Will demat account close automatically?
Once the account balance becomes zero, the customer can close the demat account. If you have a Basic Services Demat Account, there should be no annual maintenance fees.
Can I freeze my demat account?
The broker (or DP) can also freeze the demat account without having to register for the depositories' online services. However, if you go through a broker, this request will take longer to process.
What happens if I don't use my trading account?
After a certain period of time, your trading account will be marked dormant (an inactive account). This indicates that you won't be able to conduct any trades with this account until you reactivate it.
Can I reopen my closed demat account?
To recover your demat account, you'll need to fill out a reactivation form and provide Know Your Customer (KYC) information such as proof of address and identification. Your DP will also check to see if your signatures match those on the original documents. It's possible that your DP will charge you a price to revive it. This depends from one DP to another.
