When we choose to invest and trade, we find ways to do the needful, like opening a demat account. But as time passes, we often forget, get lazy, and let things lie around. And this can prove to be a costly mistake.
Demat accounts incur fees and maintenance charges. Therefore, it is wise to close all inactive or zero balance Demat accounts. Otherwise, we end up losing money. So it is vital to know all the right steps in how to close a demat account.
Closing a demat account with Angel Broking is easy. And it's free!
Before You Close your Demat Account
Note that a demat account cannot be closed online alone, just by making an online request for account closure via email. You have to submit an application in person, which includes providing a hard copy of the necessary paperwork. However, by downloading the closure form online, you can certainly ease the process.
If you want to know how to close a Demat account online, there are a few preliminary steps to take care of:
- Make sure there are no shares present in the account.
- Make sure their account does not have a negative balance. To know the details of your account, check it by logging in to your account or contact your registered branch.
- Download the Account Closure Form from the Angel Broking website under "Important Document" section.
How to Deactivate a Demat Account :
Fill the Account Closure Form. If more than one person shares the demat account, all the holders are required to sign the closure form in the presence of a Depository Participant (DP) official. The DP can be a brokerage firm or a bank)
Make sure you furnish the following details while submitting your closure form:
- Your ID and the DP ID
- KYC details like name and address that are aligned with your records.
- State the reason for closing the Demat account.
- A bank official must submit and verify the self-attested identity proof copy. This is mandatory.
Ensure to submit the unused portion of the delivery instruction booklet slip back to the DP.
The form is submitted to the nearest branch, in person. Corporate accounts can be transferred or closed by an authorised signatory of the institution.
What to do in case there are remaining holdings in your Demat account
- Download the closure form and fill it in.
- Fill in the delivery instruction slip (DIS) to transfer the remaining securities held in the account to another Demat account. Names and details of Demat account holders on new and old must be identical.
- Submit the client master report from the central depository of the new account, where the transfer is being proposed, along with the relevant stamp, signature, and logo.
- Submit the closure form along with the DIS, CML, and other necessary documents at the nearest branch or at the DP’s Head Office.
Reputed leading broking firms like Angel Broking make it as simple as possible to close an account, as to start one. A prudent investor knows when to close an underutilised demat account. Why waste money on unnecessary fees and maintenance charges?