How to Close Demat Account – Full Process Explained

Meet Rohan, a cricket-crazy Mumbaikar who once jumped into the stock market. Back in 2018, he opened a demat account with high hopes and zero research. Fast-forward to 2025, and he has not placed a single trade in over three years. 

But every quarter, without fail, 75 Indian rupees vanish from his bank, thanks to account maintenance charges.

That is ₹300 a year for an account that just sits there like last year’s Diwali sweets, untouched and unwanted. 

Multiply that by 5 years, and Rohan has wasted ₹1500. That could have paid for five cutting chai sessions, three metro rides, and one plate of pav bhaji at Chowpatty.

And he is not alone. Recent regulatory reports show over 1.2 crore inactive demat accounts exist in India. That is ₹360 crore in annual maintenance if each pays even 300 rupees yearly.

So when Rohan finally saw a meme saying, “Paise bachaane ka asli tareeka; demat account band karwa lo bhai!” he knew it was time to act.

This blog will show you how to close a demat account step by step, with swag, sass, and straight-up desi calculations. Buckle up, kyunki paisa bachane ka time aa gaya hai!

Why Should You Close a Demat Account You Do Not Use?

Here is a quick fact: Even inactive demat accounts charge Annual Maintenance Fees. Most people do not realise how much this adds up.

Calculation Time:

That is enough for three movie tickets and unlimited popcorn. Seriously!

Inactive demat accounts are also risky. They can become soft targets for fraud if neglected.

So, the question is not whether to close the demat account, but how to close the demat account.

Ek kaam karo, paise bachao; Demat account turant band karao!

How to Close Demat Account: Step-by-Step Funky Guide

First Things First: You cannot close demat account online unless it is completely empty. All shares must be transferred or sold.

Step 1: Check Balance and Holdings

Log in to your demat account. If you have shares remaining, you must do either of the following:

• Sell the shares using your trading portal.
  
  
• Transfer the shares to another active demat account.
   

Example

Priya, a techie in Bengaluru, had 15 shares of a company worth ₹800 each. She transferred them to her new account.

Calculation:
 

 15 shares x ₹800 = ₹12,000 transferred

She closed her old account next day. Smart move!

Step 2: Download the Closure Form

Visit your Depository Participant's website. This could be one of the following:

Read More – How to Buy Shares – Beginner’s Step-by-Step Guide

Search for the "Demat Account Closure Form" and download the printable PDF.

Dimaag nahi hilana, sirf form download karna!

Step 3: Fill Out the Closure Form

Important fields to fill:

• Client ID
   
• DP ID
  
  
• Full name as per records
  
  
• Reason for closure
  
  
• Option for rematerialisation or transfer
  
  

Attach the following:

• A cancelled cheque
  
  
• Photocopy of PAN card
  
  
• Self-attested identity proof
  
  

Example:

Vinay from Hyderabad made a small error by writing his nickname instead of his official name, which resulted in his form being rejected. Always match your documents.

Form bharne mein dosti nahi, accuracy chahiye bhai!

Step 4: Submit It Physically

Even though India is becoming digital-first, demat account closure still requires physical submission.

You must courier or visit the branch of your Depository Participant.

Example:

Nikita from Pune used speed post and tracked delivery through India Post. Her account closed in 7 working days.

Courier Cost Table:

Choose your courier wisely. No need to go full F1 mode.

Offline ka zamaana gaya nahi, thoda patience laana padta hai!

What If You Have Multiple Demat Accounts?

You cannot have unlimited demat accounts with the same broker. But you can have accounts with multiple brokers.

Example:

Sarthak had accounts with Zerodha, ICICI Direct, and Upstox.

He closed two and transferred all shares to Zerodha to cut down maintenance costs.

He saved ₹1000 per year. That is two Domino’s pizzas delivered hot and fresh!

Purāne account kā kyā kām hai jab naye mein ho poora kaam!

Timeline: How Long Does It Take to Close a Demat Account?

You will receive a confirmation email and SMS from your broker once the account is closed.

Mistakes to Avoid While Closing a Demat Account

1. Leaving shares behind – Your closure will be rejected.
   
   
2. Incorrect or mismatched documents – Signature mismatch is a common problem.
   
   
3. Sending form without self-attestation – Very silly but very common.
   
   
4. Not checking charges – Some brokers may charge for account closure.
   
   

Example:

Kajal from Chennai paid ₹100 as a closure charge. She did not read the broker’s policy page.

Always double-check the charges on the broker’s website or SEBI regulations.

Choti choti baaton ka bhi khayal rakhna, nahi toh paisa jayega bekar!

Can You Close a Demat Account Online?

Some brokers like Zerodha offer online closure, only if:

• Your account has zero holdings
  
  
• No negative balance exists
  
  
• KYC is complete
  
  

Visit Zerodha's support portal and raise a closure request.

But remember, if there is even one paisa pending, you must go offline.

Jaldi karo, paisa bachao, demat ko bye-bye kaho!

Conclusion: How to Close a Demat Account Like a Pro

It is easy, fast, and financially wise to close a demat account you do not use. If you are organised, everything, from cancelled cheques to courier receipts, is manageable.

Let us face it. Your digital financial wardrobe will become a mess if you do not clean it up. Closing unused accounts is like throwing out that college hoodie you no longer wear; it is time.

So, Rohan did it. Priya did it. Nikita did it. Even your cousin’s dog walker probably did it.

Now you know how to close a demat account. So, what are you waiting for?

Share This Blog With Your Doston, Kyunki Gyaan Baantna Hai Zaroori!

Frequently Asked Questions

1. Can I close my demat account anytime?

Yes, as long as your holdings are cleared and balance is settled.

2. Can I reopen a closed demat account?

No, but you can open a new one.

3. Is closure free?

Usually, yes. But check the broker’s policy.

4. Do I get any confirmation?

Yes. You will receive closure confirmation via email and SMS.

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LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?