Explained: Here’s how you can close your demat account

Demat accounts, used to invest and trade in share market, incur fees and maintenance charges. Opening the account is probably one of the first things investors do. However, one often tends to forget about it if you’re not a regular trader. Sometimes, people get lazy and don’t keep a check on their demat accounts. It is advisable to close all inactive or zero balance demat accounts otherwise you can lose money basis these. Closing a demat account is pretty easy and free of cost.

Some prerequisites before closing such dormant accounts is to make sure there are no shares are present in the account and it does not have a negative balance. If you are the account holder, download the closure form from the website of the deposiory participant (DP).

The following details must be mentioned in the form:
– DP ID and Client ID
– Existing details like name, address, etc, as per previous records
– Reason for closing the account

Account holders need to sign this closure form and submit it at the DP’s head office.

To know the exact steps for closing your inactive demat account, watch the video…