Demat accounts attract annual fees and maintenance charges. It is a good idea to close all your inactive or zero balance demat accounts. If there are active balances, they can be consolidated into one account and the remaining redundant demat accounts can be closed.
Closing a demat account involves visiting the DP office or branch by any of the demat account holders and submission of requisite form and documents.
Form
The account holder can download the application form from the website of the depository participant or DP.
Details
The following details need to be mentioned:
1. DP ID and Client ID
2. Existing details like name and address – it should match the records.
3. Reason for closing the account. All holders are required to sign the closure request form. POA holder (if any) cannot sign the closure request.
Transfer
If the demat account has any balance (holdings), details of the account to which this balance needs to transferred must be mentioned in the form. The transfer can also be carried out by filling up a delivery instruction slip (DIS) before closure of the account.
Process
Once the form is submitted and is in order, it takes 7 to 10 business days to close the account.
Charges
There are no charges for account closure.
Points to note
*If the account has any negative cash balance, it must be settled before submitting the request for its closure.
*Unused delivery instruction booklet slip should be submitted back to the DP.
(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
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