Here is the page about What is a Demat account and Why to close it, Check different types of Demat account closures and a simple guide for How to close it online followed by transfer of shares and account closure…
Demat accounts which are also known as Dematerialised accounts are necessary and mandatory for any one who wants to trade online across securities markets.If you have either opened a Demat account online using platforms like Zerodha,Upstox, Groww or others like Motilal Oswal, ICICI, SBI or any other company as well you can easily close your Demat account by following the process below.
What is a Demat Account & Why to Close Demat Account
In simple terms, a Demat account is an online securities account which stores your online shares, securities and more from online trading. Consider it like your bank account where you can save money, store and then send to others. Similarly, a Demat account saves all the trading shares and securities into your Demat account.
According to the SEBI, India has more than 44.6 million Demat accounts out of which 75% of Demat accounts are dormant which means unused Demat accounts. If you have an unused Demat account then you need to pay annual charges and maintenance fees from the service provider that you have registered your account with.
Different Types of Demat Account Closures
Before we get into the closing process with all the prerequisites , learn that there are two types of Demat account closures.
Account Closure: If you have no pending payments or shares and securities or more then you can use this type to close the account.
Account Transfer & Closure: If you want to transfer the payments, shares, securities and more to another Demat account and then close this account with no pending payments then you can follow this type to close the account.
How to Close Demat Account Online
Follow the instructions carefully below and you will be able to close your Demat account.Please ensure that you have all the required documents and Demat account closure form filled when closing the account as per the process below.
- Demat Closing Form Download:
- First download the Demat closing form from your depository website i.e, if you have created an account with a bank or some other company you need to download their Demat closing form.
- Submit Required Documents to DPs Office
- Open this website and find the nearest DPs office to you https://nsdl.co.in/dps_search.php
- Submit the Demat closing form filled along with all the required KYC documents and other prerequisites as required
- DPs office will start your Demat account closing process
- Closing Shared Joint Demat Account
- In case of Shared Joint Demat account, you will need to sign the closure form along with all the Shared Joint Demat account holders in the presence of an official from DPs office.
Transfer of Shares and Account Closure
You will need to complete an Intra DIS slip for Inter-depository transfer.
- Along with the Intra DIS slip provide the original CML which is Client Master List with all the original logos, stamp and signature which are required from the account
- Provide these details along with ISNIs to which you want to transfer the account shares and securities
- Along with the 16 digit character code which is the ID of the client to whom you are transferring the shares and securities
- Finally submit all the details to the DPs office and your account will transfer and then closed.
How to Close Demat Account Online ?
You cannot close your Demat account online because you will need to close it only through DPs office by submitting Demat account closure form filled with all details along with all prerequisites kyc documents and other documents.
How to Close Demat Account Upstox ?
In order to close the Demat account from Upstox, download the Upstox Demat account closure form and fill the form and submit it with all the supporting documents to DPs office for closure of Demat account.
How to Close Demat Account Online ICICI ?
You can close your ICICI demat account only by submitting ICICI demat account closure forms with all KYC documents and prerequisite documents by submitting them to the DPs office.
How to Close Demat Account Motilal Oswal ?
You need to download the Motilal Oswal Demat account closure form and then fill it and submit to the DPs office along with all prerequisites KYC documents and other documents required.
Difference Between Closing Demat Account Vs Shared Joint Demat Account ?
Individual demat account or shared joint demat account has to be closed by offline process by visiting DP office where you will have to submit the required documentation with all the prerequisites.
