How do I close a demat account?

To close a demat account, you submit an account closure form to your broker or depository participant, signed by all holders, after the account has zero holdings and no pending dues. Some brokers now let you do this online with an Aadhaar e-sign.

Before you send the form, clear three things. First, sell or transfer every share, ETF and bond in the account. Second, settle any negative balance in the linked trading account. Third, download your full transaction and holding statements, because once closed, getting old records back can be slow.

• Move remaining shares to another demat account in your own name using a DIS.
• Cancel any pending SIPs or mandates linked to the account.
• Collect the last capital gains statement for your income tax return.
• Keep the closure acknowledgement until you see confirmation from the depository.

Many students keep three or four dormant accounts from old app offers. Each one may still charge an annual maintenance fee, so closing unused ones is a sensible clean-up. Just do not close an account that still holds even one share; the request will be rejected.

If you are setting up your accounts properly for the first time, the opening sessions of our Diploma in Stock Market walk you through the full account structure.