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How to close your Demat account online?

Written by - Marisha Bhatt

June 12, 2023 6 minutes

India saw a tremendous increase in the number of Demat accounts in the country during the pandemic and the post-pandemic scenario. India has approximately 11.6 crore Demat accounts as of April 2023, however, the growth rate for the active user base on the NSE has been decreasing for 10 months in a row. This has led to many inactive Demat accounts in the system leading to a rising question in front of the account holders about how to close a Demat account online.

Given here is the answer to this question and related details. 

Read More: Difference between Demat account and trading account

Demat account closure and its types

Demat accounts are used to hold the shares and certificates in digital format and to trade in securities on the stock exchange. These Demat accounts are held with the depository participants and opened with registered stockbrokers at zero or nominal charges. However, there are many cases of Demat accounts being opened and then they are kept inactive. Keeping inactive Demat accounts has many consequences and therefore, it is important to close them. There are two modes of closing the Demat accounts for the account holder. The details of the same are given below.

Basic Account Closure

Basic account closure refers to the process of closing a demat account without transferring the securities held in that account to another demat account. In this case, the securities held in the Demat account are either sold or transferred to the client’s own physical possession. Basic account closure is typically chosen when an account holder no longer wishes to maintain a Demat account and liquidates their holdings or prefers to handle their securities in physical form or through alternative means. Demat account holders have to clear all the dues before closing their Demat account with the broker which can include all outstanding charges or payments. 

Transfer and Account Closure

Transfer and account closure, also known as account closure cum transfer, involves closing a Demat account and simultaneously transferring the securities held in that account to another Demat account. This process allows the account holder to consolidate their holdings by transferring the securities to a single demat account. The transfer can be made within the same depository participant (DP) or to a different DP, depending on the account holder’s preference. 

Requirements for Demat account closure

The closure of the Demat account requires many formalities. The prime among them is accumulating the necessary documents and meeting the checklist for closing the Demat account. The details of the same are highlighted hereunder.

  • Account holders have to provide the ID of the Demat account along with their DP ID (Depository Participant ID).
  • Following this they have to submit the KYC details, including name and address, which should match the personal information on record with the Demat account.
  • The reason for deleting the Demat account also has to be provided at this particular time.
  • The documents to be provided include a self-attested and verified copy of identity proof, such as an Aadhaar card, PAN card, or passport. However, it is important to verify with the broker or depository the specific identity proof requirements for closing a Demat account as they can vary as per their guidelines.
  • Finally, account holders have to submit the Demat account closure form with the necessary details as mentioned in the form. 

Steps to close Demat account

The procedure to close the Demat account can be easily done through online mode without any hassles for the account holders. The steps for online closure of Demat accounts either in the form of basic account closure or transfer of account are mentioned below. 

Basic closure

The steps for the online closure of the Demat account are given below.

  1. Download the Demat account closure form from your depository participant’s (DP) website, which can be a bank, broker, or authorised government agency where the account is opened.
  2. Fill in the closure form accurately, and attach valid KYC documents. Account holders will have to physically submit the forms and documents to the DP’s branch or office; if unable to visit in person, a request for exception is to be made and documents have to be mailed to the concerned office.
  3. In the case of joint account ownership, all Demat account holders must sign the closure form in the presence of an official at the DP’s office.

Transfer and account closure 

The steps for the online closure of the Demat account are given below.

  1. In the case of intra-depository transfer between NSDL and CDSL, an intra-delivery instruction slip (DIS) is required. Account holders have to select the ‘Off-Market’ transfer option in the Demat account with identical names and details of account holders on both the old and new accounts.
  2. The next step is to obtain the original client master list (CML) from the account, including relevant details such as logo, stamp, and signatures.
  3. The closure form has to be complete with names and relevant details of the shares to be transferred, ensuring the mention of the target client/account details for a successful transfer.
  4. This filled-in form has to be submitted along with KYC and other relevant documents in person to the DP’s office. Alternatively, it can also be mailed to their head office.
  5. It is important to note that for closure, a bank official must verify the self-attested demat closure form.


The onset of Demat accounts was a revolution in the Indian stock markets making them all the more accessible for an average investor and trader. However, closing inactive Demat accounts is essential to avoid piling unnecessary account charges and the hassles of maintaining a dormant account.


1. What are the two depository participants in India?

The two depository participants in India are NSDL and CDSL.

2. Are there any charges to be paid for closing a Demat account?

No, there are no charges to be paid for the closure of a demat account.

3. How much time does it take for the Demat account to be closed post-application?

It takes 7-10 days for the Demat account to be closed post submitting the application successfully.

4. How will the account holder know when the Demat account is successfully closed?

The account holder will be sent a confirmation of the closure of their Demat account after the process is successfully completed at the DP’s end.

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