Important: Procedure to close a demat accountAs per the extant guidelines of SEBI, purchase, sale and holding of shares are to be done through demat account. This paperless account is very safe and convenient also. However, the demat account attracts annual fees and maintenance charges. So if an investor has more than one demat account, the investment experts advise to close such demat account which is sparingly used. So we must know the procedure to close a demat account.
The account-holder should download the application form from the website of the Depository Participant (DP). The form should be filled up properly and should be physically submitted to the nearest DP office. At the same time, it should be noted that if the account has negative cash balance, it must be settled before the closure of the account. Furthermore, unused Delivery Instruction Booklet Slip should be returned to the DP. In the application form, the DP-Id and Client- Id should be correctly indicated.
Last but not the least, if the demat account which is going to be closed has any holding, the details of another demat account where the balance is to be transferred must be indicated clearly.
The entire process takes around fifteen days.