To invest in the Share Market, you must have a Demat Account. A demat account is required to keep the shares you have purchased, just as a bank account is required to deposit money in the bank. In recent years, a rapid rise in the number of investors in the stock market has occurred. According to statistics, the total number of demat accounts in India has surpassed 11 crore, representing a 31 percent annual increase.
But many of these accounts are old and haven’t been used in years, so they’re inactive. Since these inactive demat accounts are subject to an annual fee even if they are not being used, it is best to close them in such situations. To save money on this annual fee, it’s best to close an inactive demat account.
For closing a demat account, you must visit the NSDL’s Depository Participants (DP) office. The process is done offline. The demat account closing form can be obtained from the DP office, where you will need to provide a few essential account-related documents and forms. The Depository Participant can also download the form, fill it out, and hand it in in person. When you close the account, you will be required to provide the DP ID, Client ID, name, address, and other information.
In addition, you will need to sign the demat account’s closure request form and state the reason for closing the account. The details of the transfer must be filed with the DP office after the money has been deposited into the account.
Within ten days of your request for the demat account to be closed, your account will be closed. The closing of the account does not incur any fees; however, you will be required to pay any outstanding fees before the account can be closed.
