How to Close a Demat Account
Check All Frequently Asked Questions
So, you have decided to move on and close a demat account with your stockbroker! Well, that can surely happen. Trading on the stock market can be excruciating and can take a lot of toll on you physically as well as mentally.
Watch this Video in Hindi at the end of the page!
Unlike the Account Opening process, account closure is relatively a tedious task.
Know all about Demat Account Rules, as it covered from account opening to account closing.
For instance, when you opened the account, the stockbroker might have called you multiple times to get one single meeting; even if you were sitting at the farthest places of the country.
On the other hand, to close a Demat account – you either need to send the signed document through a courier service or visit the branch personally.
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Nonetheless, there are few formalities you need to take care of in order to close a Demat account with your current stockbroker.
Close a Demat Account – Things to Take Care Of
Here are some of the important points you must take care of before you go ahead and close your Demat account with the current stockbroker:
- No shares must be present in the Demat account you are looking to close. They either need to be sold out or transferred to some other Demat account. One can also get the stocks rematerialized into physical form.
- No negative cash balance in your account must be there.
- You are also required to submit the unused delivery Instruction booklet slip back to the DP
Also Read: How to Close Upstox Account?
Once these formalities are taken care of correctly, you need to either send the account closing form through a courier or visit the branch or franchise personally. Post submission, it takes your DP 2 to 3 business days to close a Demat account.
Remember, there are no extra charges to close a Demat account apart from your balance.
You can get your shares transferred to some other demat account you might have. You would need to fill up and submit the details of the depository participant along with notifying the DP itself that new shares are going to be allocated to your demat account. Generally, it takes 3 to 5 business days for this transfer to take place between demat accounts.
Here we are providing you with links to forms of all the prominent stockbrokers that you need to fill up and submit in order to close a demat account.
Discussing further, some of the top reasons why someone generally chooses to close his/her demat account are:
- Stock trading does not seem to be their cup of tea anymore and the interest has died down
- Trading takes a lot of toll on one’s life physically and mentally
- Bad experience with the stock market behaviour
- Bad experience with the stockbroker
To explain it better, let’s take an example of a new stockbroker in the industry, Groww. The broker is offering services since 2020 and has attracted many customers by offering the least brokerage and zero Demat account opening fees. But when it comes to trading and other services, it lacks in offering satisfaction to investors and hence many clients look forward to knowing how to delete Groww account.
Nothing much can be done in case your reason to close a Demat account lies in the top 3. However, unfortunately, if you have had an unhappy experience with the stockbroker, we advise you to take a step back and try to contemplate on the specific aspects where you found your stockbroker relatively less competent for you specifically, be it –
- High Brokerage charges
- Sleazy Customer service
- Slow and low-quality trading platforms
- Wrong tips
Once you are able to narrow down to the specific concerning aspect(s), it becomes relatively easier to figure out a better substitute stockbroker.
We suggest you check out this detailed review of the Top Stock Brokers in India for reference that discusses different full service and discount stock brokers from different perspectives.
Still not sure on how to close your Demat Account?
Why don’t you send your details and we will arrange a Free Call back for further guidance!
There are a few distinct advantages of having a bank as a DP. Having a Demat account with a bank DP, usually provides quick processing, accessibility, convenience, and online transaction capability to the investor.
To trade in shares, you need to have two accounts – a trading account with a share broker and a demat account with a DP. You can have these two accounts with different entity, but it is advisable to keep trading and depository accounts with the same entity to avoid settlement issues.
If you do not get share certificates from the registrar and are unable to get your account closed due to pending remat requests, you should get it frozen.
Hi currently i am holding trading cum demat account with Geojit and shares are held in NSDL depository demat account. I would like to close my relationship with Geojit and transfer my entire shareholding to a new trading and demat account with a new share brokers who will provide me CDSL depository and also offer best brokerage. Please let me know the procedures without involving any cost and expenses like off market transactions and DIS charges etc.