How to Close Your Demat Account Online?

Your Demat account is a digital vault that keeps your shares, bonds, mutual funds, ETFs, etc. As of March 2025, the total Demat accounts in India are 19.24 crore, reflecting the rapid rise in retail investing.

While a single investor can have multiple Demat accounts across different brokers, but may incur extra annual maintenance charges and unnecessary complexity.

If you no longer use one of your Demat accounts, do not worry, you can close your Demat account online by just following some simple steps. Let us see how to close a Demat account online.

Quick Synopsis

• Multiple accounts can lead to extra maintenance charges, especially for non-BSDA accounts.
• You can close a Demat account online if there are no holdings or dues by submitting a closure form via your DP’s website or app.
• If holdings exist, transfer or sell them first. The process is free and typically takes 7–10 working days.

Step By Step Process to Close Your Demat Account Online 

This Demat account closure online procedure works only if you do not have any pending dues or existing holdings in your Demat account. In case you have pending holdings, read the next section of this blog.

1. Contact Your DP: First, contact your Depository Participant (DP) through their official website or app to get the necessary customer support details.
2. Get the Closure Form: Request and fill out the account closure form. You will need to provide your Demat account number, personal details, and reason for closure.
3. Submit Documents and Clear Dues: Attach necessary documents like a copy of your PAN card, identity proof, and address proof. Clear every due or negative balance (if any).
4. Verification & Closure: Your DP will verify the details and documents. If everything is correct, your Demat account will be closed within the next few working days.

What is the Process of Demat Account Closure if I have Holdings in my Demat Account? 

If your Demat account has holdings, sell or transfer them to another account before placing the Demat account closure request. This process is called Transfer Cum Closure Request. Here is how to complete this process:

1. Initiate Share Transfer: You have to use an Intra DIS slip for transfers between different depositories (NSDL to CDSL or vice versa). Select the ‘Off-Market Transfer’ option and proceed.
2. Get Client Master List (CML): You need a stamped and signed CML from your new DP.
3. Provide Transfer Details: Choose all the securities with their ISINs and mention the 16-digit target client ID.
4. Submit Transfer Request: Submit the DIS slip and documents to your DP’s office physically or via registered post.
5. Submit Closure Form: You need to self-attest the Demat account closing form. After that, your DP will process and close the account.

Things to Consider Before Closing Your Demat Account  

Before you place a request for Demat account closure online, here are some of the factors to consider:

• Transfer Your Holdings: Transfer all your shares, bonds, and other securities to another Demat account or sell them before closing your account. Otherwise, you cannot close your Demat account.
• Clear All Dues: Make sure you have paid any outstanding charges or fees. Your DP will not allow you to close your account if you have unpaid dues or a negative balance.
• Submit Only One Request: Do not place multiple closure requests, especially when there is a technical issue. Just send one to avoid confusion and delays.
• Download Important Reports: Save copies of your contract notes, P&L statements, and tax reports before closing the account, as you may not be able to access them later.

Final Words

Demat account closure is essential to avoid unwanted surprises in the name of maintenance charges. When you have multiple Demat accounts, from the second account onwards, this is automatically considered as Non-BSDA accounts, which incur charges irrespective of your holding value. 

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