How to Close Your Demat Account Online

Closing a Demat account is simple if you first clear everything linked to the account.

• Check whether your Demat account has shares or other securities.
• Transfer securities you want to keep to another Demat account.
• Clear any unpaid charges.
• Make sure there are no pending transactions.
• Submit the closure request to your DP.
• If your DP provides online Demat services, you can also use its online closure facility.
• A Demat account closure can take up to 30 days after the DP receives the correct documents.

You can close your Demat account by submitting a closure request to your DP.

Follow these simple steps:

1. Check whether you have any shares or other securities in the account.
2. Move the securities you want to keep to another Demat account.
3. Clear any unpaid charges.
4. Make sure there are no pending transactions.
5. Get the Demat account closure form from your DP or use its online closure facility, if available.
6. Fill in your account details correctly.
7. Submit the required documents or complete online verification.
8. Keep the acknowledgement for future reference.

For example, suppose you have 20 shares in your old Demat account. If you want to keep those shares, move them to another Demat account before closing the old one.

The closure can take up to 30 days after the DP receives the correct documents.

A dormant Demat account is an account that you no longer use.

You may want to close it if:

• You do not use the account anymore.
• The account has maintenance charges.
• You have more than one Demat account.
• You want to manage all your investments through one account.

Closing an unused account can make your investments easier to manage.

What does full account closure mean?

Full account closure means permanently shutting the Demat account.

Before closing it:

• Clear unpaid charges.
• Complete pending transactions.
• Transfer securities you want to keep.

After the account is closed, you cannot use it to hold securities.

There are two common situations when closing a Demat account.

1. What is a basic account closure?

A basic closure is possible when your Demat account is already empty.

This means:

• There are no securities in the account.
• There are no pending transactions.
• There are no unpaid charges.

You can then submit the closure request through the process given by your DP.

2. What are transfer and account closure?

This option is useful when you still have securities in the account.

You first transfer the securities to another Demat account and then close the old account.

For example, suppose Demat Account A has 50 shares. You want to close Account A and use Account B. You can move the 50 shares to Account B and then close Account A.

Your DP may ask for the details of the Demat account where you want to move the securities.

Follow these simple points before submitting your closure request.

Do’s

1. Check all securities in your Demat account.
2. Clear any unpaid charges.
3. Check for pending transactions.
4. Read the closure form carefully.
5. Fill in all details correctly.
6. Transfer the securities you want to keep.

Don’ts

1. Do not submit an incomplete form.
2. Do not forget about shares or other securities in the account.
3. Do not give the wrong Demat account details while transferring securities.

A Demat account closure can take up to 30 days after the DP receives the correct documents.

Before submitting your request:

• Check your securities: Move the securities you want to keep.
• Clear your dues: Pay any unpaid account charges.
• Check pending transactions: Make sure no transaction is still incomplete.
• Follow the DP process: Submit the documents or online request required by your DP.

There is no account closure charge. However, you still need to clear any unpaid charges linked to the account.

The exact documents depend on your DP and the type of closure.

You may need:

• Demat account closure form
• Demat account number
• DP ID
• PAN details
• Your signature
• Details of the new Demat account, if securities are being transferred
• Other details requested by your depository participant

If you close the account online, your DP may ask you to complete electronic verification.

You may close a Demat account when you no longer need it or want to use another account.

A. Why might you close a Demat account?

Common reasons include:

• You do not use it: You have stopped investing or trading through that account.
• You want to avoid charges: The unused account may have maintenance charges.
• You have many accounts: You want to keep fewer Demat accounts.
• You face service issues: You want to move to another DP.
• You need different services: Another account suits your needs better.

B. What should you consider before closing it?

• Transfer securities: Move shares and other securities you want to keep.
• You do not have to sell: You can transfer securities instead of selling them.
• Clear unpaid charges: Pay any amount due to your DP.
• Complete pending transactions: Finish any transaction that is still being processed.
• Credit score: Closing a Demat account does not directly affect your credit score because a Demat account is not a loan or credit account.

Closing a Demat account is easy when you follow the steps in the right order. First, check your securities, pending transactions, and unpaid charges. Move the securities you want to keep to another Demat account. Then submit the closure request through the method provided by your DP. If online closure is available, you can use that option. The full process can take up to 30 days after the DP receives the correct documents.