So, you have decided to move on and close a demat account with your stockbroker! Well, that can surely happen. Trading on the stock market can be excruciating and can take a lot of toll on you physically as well as mentally.
Unlike Account Opening process, account closure is relatively a tedious task. For instance, when you opened the account, the stockbroker might have called you multiple times to get one single meeting; even if you were sitting at farthest places of the country. On the other hand, to close a demat account - you either need to send the signed document through a courier service or visit the branch personally.
Nonetheless, there are few formalities you need to take care of in order to close a demat account with your current stock broker.
Things to take care before you close a Demat Account
Here are some of the important points you must take care of before you go ahead and close your demat account with the current stockbroker:
- No shares must be present in the demat account you are looking to close. They either need to be sold out or transferred to some other demat account. One can also get the stocks rematerialized into physical form.
- No negative cash balance in your account must be there.
- You are also required to submit the unused delivery Instruction booklet slip back to the DP
Once these formalities are taken care of correctly, you need to either send the account closing form through a courier or visit the branch or franchise personally. Post submission, it takes your DP 2 to 3 business days to close a demat account. Remember, there are no extra charges to close a demat account apart from your balance.
In order to learn about the complete process, you can check How to Close Demat Account here.