Demat Account: If you are not using Demat account then close it, how much will be charged, what is the process, know everything Demat Account Closing- Demat account cannot be closed online. For this you will have to go to your DP’s office.
Just as to deposit money in the bank, a savings or current account is required. Similarly, to invest money in the share market, a demat account is required. This is the account (Demat Account Closing) where you keep your shares which you have purchased. If you are also not using your demat account regularly then the account may become inactive. Whether you use the account or not, you have to pay some fees annually. To avoid such unnecessary expenses, it is better to close your demat account.
The process of closing demat account may vary slightly from different Depository Participant (DP). The DP can be a bank, financial institution or brokerage firm, which opens the demat account. Demat account cannot be closed online. For this you will have to go to your DP’s office. Yes, you can download the closure form online. Your account will be closed within a total period of 10 days after requesting for closure of demat account.
You have to contact the DP with whom you have your demat account. You can find their contact details in your account details or on their website. Know the process of closing account from DP
First of all, ensure that there are no securities or funds remaining in your demat account. Before initiating the process of account closure, you will have to sell all your securities or transfer them to another demat account.
If there are any dues or charges associated with your demat account, clear them before initiating the closure process. This may include annual maintenance fees or transaction fees.
The process of closing demat account is done offline only. For this you will have to go to the DP (Depository Participants) office. You can get the account closure form from the DP website. Fill the form correctly with required details. This includes your demat account number, personal details and reasons for closure. Along with the closure form, you may need to submit certain documents such as a copy of your PAN card, address proof and identity proof.
Make sure you have all the necessary paperwork ready. The DP will verify the closure form and documents submitted by you. Once everything is in place they will begin the closing process. After processing your request, DP will send you a confirmation of account closure by e-mail or letter.