Demat accounts are now compulsory for all investors trading in the securities market. You can hold a maximum of five demat accounts. Such accounts come with their own annual fees and maintenance charges. So, it is wise for investors to close any zero balance or inactive demat accounts that they currently hold.
You can open a demat account online but closing one is a different process altogether. Read on to know how to close demat account.
You need to take the following steps to close demat account:
Read more: How to open a demat account
You must mention the following details while submitting your closure form:
You must ensure that you have settled all payments before closing your demat account. Also, see that the account in question does not hold any securities. Suppose there are securities still held in the account. Then, you can take the following steps to close it:
Read more: Documents required for a demat account
You first need to submit the closure form and required documents. Then, it takes 7–10 working days to close the account.
You do not have to pay any charges for closing your demat account.
Remember the following points before closing your demat account:
Read more: Conclusion of demat account
India has two national depositories:
Transfers within NDSL or CDSL accounts are intra-depository transfers. You will need to use Intra Depository Instruction Slips (Intra DIS) for these.
Transfers between NDSL and CDSL accounts are inter-depository transfers. You will need to use Inter Depository Instruction Slips (Inter DIS) for these.
Fill in the relevant DIS depending on the type of transfer. You must mention the names of the shares you wish to transfer along with their ISINs. You will also have to mention the target client ID. The target client ID consists of a 16-character code made up of the DP ID and the client ID.
If it is an intra-depository transfer, choose the ‘Off Market Transfer’ option. For an inter-depository transfer, you must choose the ‘Inter-Depository’ option.
Do not let unnecessary charges on inactive demat accounts drain your finances. Let your money work for you by opening and maintaining proper demat accounts. If you wish to start investing in shares, you could open a demat account through Kotak Securities, among others.
Read More: Informative report on demat account
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