Published - Mon, 21 Feb 2022
When we finally decide to invest and trade, we often lookout for ways to execute the necessary process. One such is creating a Demat account. But with today’s fast-paced worldly affairs, we tend to forget and become lazy and keep postponing things till the last hour. And this might turn out to be an expensive error, especially in the world of the stock market!
Fees and maintenance costs apply to Demat accounts. As a result, it is advised to cancel any of your inactive or zero balance Demat accounts immediately. Otherwise, we will lose money. As a result, knowing how to terminate a Demat account is critical.
Demat or dematerialized accounts are an excellent
option for most people to supplement their income. An online account is
required for investors who trade in the financial markets.
According to SEBI, the country has around 44.46 million Demat accounts. Basically, a Demat account is an electronic account where your shares and securities are stored. With the economy improving, more individuals are hoping to jump on the stock exchange bandwagon.
Regardless matter how large the statistics are, SEBI has revealed that over 75% of accounts remain dormant. An idle Demat account is a financial drain that incurs yearly fees and maintenance expenses. As a result, it's a good idea to prevent any excessive expenses and terminate your Demat account.
Know These Before Closing Your Demat Account
Note that, your Demat account cannot be simply canceled by submitting an online request for its closure. Be it through email or customer care.
You are ought to submit an application in person that includes the hard copies of all the mandatory papers. But there is also a way out. If you are facing a time crunch, then pace up the entire process by downloading the closure form online.
Follow these basic steps to know how to close Demat account online:
Two Types of Demat Account Closure!
Account closure: If there are no payments pending or being on hold in your account [you being the investor], then your request to close the Demat account online would be sent.
It would be sent off to the relevant depository partner [also referred to as DP].
Transfer and account closure: This
method is a bit different. Suppose, you still have some securities pending and
need to be transferred to another Demat account, then go for this method before
actually shutting off your original Demat account.
Close Your Demat Account Online
Fill up all the details in the Account Closure Form. If the Demat account is shared by more than one person, it is mandatory for all holders to sign it in the presence of a Depository Participant (DP) official. A brokerage business or a bank can serve as the DP.
Make sure when completing the closure form, you do not forget to include the following information:
When moving pending holdings or shares from one Demat account to another, the following steps must be taken to cancel or delete a Demat account:
Though Demat accounts cannot be entirely closed online, their process can be simplified by completing all the essential paperwork online. It is critical to ensure that there are no outstanding charges, fines, or shares in the account and that all of the information is correct. To avoid errors or lapses, the individual's details must be reviewed before transferring any shares or accounts.
Mon, 21 Feb 2022
Mon, 21 Feb 2022
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