Demat Account is an essential requirement for investing in the Share Market. Just like a bank account is necessary for depositing money in the bank, a demat account is necessary for keeping the shares that you have purchased. The number of people investing money in the stock market has increased rapidly in recent times. As per statistics, the total number of demat accounts in India has crossed 11 crores, with a 31 percent increase in the number of demat accounts on an annual basis.
However, many of these accounts are old and have not been used for years, which makes them inactive. In such cases, it is advisable to close these inactive demat accounts, as an annual charge is levied on them even if they are not being used. If you have an inactive demat account, it is better to close it to save on this annual charge.
The process of closing a demat account is offline, and you have to visit the Depository Participants (DP) office of NSDL for the same. You will have to submit some essential documents and forms related to the account to the DP office, and you can get the demat account closing form from there. The form can also be downloaded from the website of the Depository Participant, filled, and submitted in person. You will have to provide DP ID, Client ID, name, address, and other details while closing the account.
Additionally, you will have to mention the reason for closing the account and sign the closure request form of the demat account. After transferring the money deposited in the account to another account, the details of the same will have to be filed with the DP office.
Your account will be closed within 10 days after you request for closure of the demat account. There is no charge for closing the account, but if there is any outstanding fee in your account, you will have to pay it before the account can be closed.
Read more: Government pension scheme offering monthly pension of Rs 18,500 to end soon, invest before March 31
