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Investing

How to Close a Demat Account

Clear your dues, move or sell any holdings, and submit a closure request signed by all holders to your DP. SEBI rules bar any closure charge.

VD

Written by Vikram Desai

Published 2 November 2026·7 min read

On this page9 sections
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To close a demat account, submit an Account Closure Request Form (ACRF) to your depository participant (DP), signed by all holders, after clearing any dues. If shares are still in the account, name a target demat account in your own name and the DP moves them before closing. SEBI rules bar any charge for the closure itself.

Key facts

Item Rule
Form Account Closure Request Form (ACRF), or a letter signed by all holders
Who signs Every account holder; a power of attorney holder cannot sign
Closure charge None, under the SEBI Master Circular for Depositories
Transfer of all holdings on closure Free if the target account has identical holders in the same order; otherwise normal DP charges
Online closure Offered by DPs that provide online services, since 1 August 2021; sole holders only
Account with zero holdings Can be closed on an email from your registered email ID
Prepaid annual maintenance charge Refunded for the remaining quarters
Trading account Closed by a separate request to the broker

Before closing: holdings and dues

Check three things first, since any one of them can hold up the request.

ItemDetails
Duesthe DP will reject the request if any charges are outstanding. Pay the pending annual maintenance charge (AMC) or transaction fees shown in your ledger.
Holdingsdownload your latest holding statement. Sell what you want to sell, and wait for settlement, before you apply. Anything left must be moved to another account or rematerialised.
Blocked balancespledged or frozen securities cannot be moved with the rest. Release the pledge or resolve the freeze first. Old demat requests pending with a company can also hold up closure.

A demat account and a trading account are separate. The HDFC Bank closure form, for example, tells you to send a separate request to delink or close the trading account. Settle any open positions and withdraw the funds balance from your broker as well. If you are closing because of costs, compare them on our brokerage charges page first; switching to a cheaper broker may suit you better than giving up a demat account altogether.

Online vs offline closure

Online

SEBI asked depositories to offer online closure from 1 August 2021. It applies to DPs that open accounts or offer services online, and only to individual accounts with a single holder and no pledge, freeze or pending demat request.

  1. Log in to your DP’s website or app with your own user ID and password.
  2. Open the account closure option. You do not have to give a reason.
  3. If shares remain, enter the target demat account and upload the target account’s Client Master Report (CMR), unless your DP can verify it electronically.
  4. Upload a photo or scan of your signature.
  5. Review the filled form and e-sign it with Aadhaar OTP.
  6. Confirm the request with the OTP sent to your registered mobile or email.
  7. Wait for the closure confirmation. The DP emails the CMR and a transaction-cum-holding statement of the closed account.

If the account holds nothing, the DP can close it on an email from your registered email ID. Requests with holdings sent by email, SMS or chat are not accepted.

Offline

  1. Download the ACRF from your DP’s website or collect it from the branch.
  2. Fill in the DP ID, client ID, names of all holders and your address as in the demat records.
  3. Tick whether the account has no balance, or whether balances are to be transferred or rematerialised.
  4. Give the target account details if balances are to be transferred.
  5. Declare that you have returned or destroyed unused delivery instruction slips (DIS).
  6. Have all holders sign, and submit the form at the branch or by post.
  7. Keep the acknowledgement with the application number.

A DP rejecting your request must tell you why. The online route is limited to sole holders, so joint and corporate accounts use the form; a company also needs a certified board resolution.

Closure form and documents

  • ACRF signed by all holders, with corrections countersigned by all.
  • For shifting to another DP: the target account’s CMR, stamped and signed or digitally signed by the new DP, with “Shifting of account” as the reason.
  • A declaration that all transactions in the account are genuine; this is part of the form.
  • A delivery instruction slip, if you are transferring to an account that is not a like-for-like shift.
  • A rematerialisation request form, if you want physical certificates back.
  • Original identity proof, if you visit the branch for a transfer-cum-closure.

Transferring leftover shares

Open the new account first, in exactly the same holder names and order as the old one. CDSL’s investor FAQ says that for a shift within CDSL, balances under lock-in or pending demat or remat also move across with free securities. For a shift to an NSDL account, only free balances move. Pledged and frozen securities do not move in either case.

NSDL account holders can also use NSDL’s online Investor Account Transfer facility to request closure cum transfer to another demat account.

If the target account has a different PAN, for example a family member’s, the request becomes an off-market transfer. You then submit a delivery instruction slip and confirm with an OTP, and normal charges apply.

Suspended, delisted or illiquid shares

If the only shares left have no market value, you need not keep paying for them. Since NSDL’s circular of 22 December 2025, a client who has filed a closure request and holds only suspended, illiquid or delisted securities can have the account marked “To be Closed”. The DP must then stop charging AMC. Conditions apply: the account must not be frozen, the securities must not be pledged, and the company must not be in insolvency. Ask your DP about the equivalent treatment if your account is with CDSL.

Charges

Item Charge
Closing the account Nil
Moving all securities to an identical account at another DP or depository Nil (SEBI, since 9 January 2006)
Moving securities to a non-identical account DP’s normal transfer charges
AMC paid in advance Refund for the balance quarters; not applicable where AMC is collected monthly or quarterly
Rematerialisation As per the DP’s tariff

SEBI’s FAQ gives an example: if you paid a year’s AMC and close in the first quarter, you get three-quarters back. The AMC year runs from your account opening date. If you only want lower costs, a Basic Services Demat Account (BSDA) charges no AMC on holdings worth up to ₹4 lakh and ₹100 a year between ₹4 lakh and ₹10 lakh, under SEBI’s June 2024 circular. Our explainer on how a demat account works covers the basics.

After closure and common problems

ItemDetails
Recordskeep the closure confirmation, CMR and final holding statement. You may need them for capital gains records or a later dispute.
Closure by the DPa DP can close your account for unpaid dues or breach of the rights and obligations document, after at least 30 days’ written notice.
Complaintsraise them first with the DP, then with the depository or on SEBI SCORES.

Frequently asked questions

Is there a fee to close a demat account?

No. SEBI’s Master Circular for Depositories says no closure charge can be levied. Transfer charges apply only if the target account’s holders differ.

Can I close a demat account online?

Yes, if your DP offers online services and the account has a single holder with no pledge, freeze or pending demat request. Accounts with holdings need an Aadhaar e-sign.

Can I close a demat account that still has shares?

Yes. Name a target account in the ACRF and the DP transfers the free securities before closing, or you can rematerialise them.

Does closing the demat account close my trading account?

No. Send a separate delinking or closure request to your broker.

Will I get my annual maintenance charge back?

If you paid it yearly or half-yearly in advance, the DP refunds the unused quarters.

What if my account only has delisted or suspended shares?

File the closure request and ask the DP to mark the account “To be Closed”. NSDL DPs must then stop charging AMC if the conditions are met.

Who signs the closure form for a joint account?

All joint holders. A power of attorney holder cannot sign it.

Sources

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