Demat Account Charge: If you are not using a demat account, closing it is a wise move. This will help you avoid unnecessary charges and manage your financial planning better.
Demat Account Charge: Just like a savings or current account is required to deposit money in a bank, a Demat account is required to invest in the stock market. A Demat account is where you keep your purchased shares. But if you are not using your Demat account for a long time, it may become inactive. Despite this, you have to pay maintenance charges every year. In such a situation, if the account is not in use, it is better to close it so that unnecessary expenses can be avoided.
The process of closing a Demat account may vary slightly according to different Depository Participant (DP). The DP can be a bank, financial institution or brokerage firm. A Demat account cannot be closed online, for this you have to visit the DP’s office. However, you can download the account closure form from their website. After requesting to close the account, the account is closed within 10 days.
Important steps before closing the account
Clear all holdings: Ensure that there are no securities or funds left in your demat account. Sell all securities or transfer them to another demat account before closing the account.
Contact DP: Contact your DP and enquire about the account closure procedure. Their contact details can be found in the account statement or on their website.
Pay dues: Pay any outstanding charges, such as annual maintenance charges or transaction charges, before closing the account.
Demat Account Closure Process
Fill Closure Form: Download the closure form from the DP’s website. Fill in your demat account number, personal details and reason for closing the account.
Submit Documents: Submit a copy of PAN Card, Proof of Identity and Proof of Address along with the closure form.
Verification: The DP will verify the forms and documents submitted by you.
Account Closure Confirmation: After verification, the DP will initiate the account closure process and send you a confirmation via email or letter.
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