How to Close a Demat Account
5paisa Research Team
Last Updated: 21 Apr, 2025 04:07 PM IST

Content
- How to Close a Demat Account?
- Types of Demat Account Closures
- How Long Does It Take to Close a Demat Account?
- Before Closing a Demat Account
- Steps to Close a Demat Account
- Offline Steps to Close a Demat Account
- Impact of Closing a Demat Account
- Conclusion
A Demat account is essential for investing in stocks, bonds, mutual funds, and other securities. However, if an investor no longer wishes to use their Demat account, it is important to close it properly to avoid unnecessary charges.
Even an inactive Demat account incurs annual maintenance charges (AMC) and other fees. If an account remains unused for a long time, closing it can help save costs and prevent security risks. This guide provides a step-by-step approach to closing a Demat account, including different closure types, online and offline closure steps, and the impact of account closure.
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Frequently Asked Questions
Yes, you can close your Demat account by submitting a closure request to your Depository Participant (DP). Ensure that all holdings are transferred or sold, dues are cleared, and there are no open positions before proceeding.
To close your Demat account, submit a closure request online or offline with your DP ID, client details, and supporting documents. Clear outstanding balances, transfer holdings, and complete all required formalities. The account is usually closed within 7-10 working days.
An inactive Demat account continues to incur annual maintenance charges (AMC) and other fees. If left unused for a long time, the account may become dormant, requiring reactivation before use. Unpaid dues may also affect your financial records.
Most Depository Participants (DPs) do not charge for closing a Demat account. However, any outstanding dues, pending AMC charges, or penalties must be cleared before the closure request is processed. It is advisable to check with your DP for specific policies.
Once your closure request is processed, you will receive a confirmation via email or SMS from your Depository Participant (DP). You can also verify the closure by checking your account status through the DP’s portal or contacting customer support.