A Demat account is a dematerialized account where all the shares and securities of the country are holding electronically. This account is made in such a way so that any investor is not capable of withdrawing the physical possession of the certificates.
For opening the Demat account you will need a principal investor while it will be registered with the investment broker. The shares in the Demat account are actually kept at two depositories namely, the National Securities Depository Limited and the Central Depository Services Limited.
Now the point is that all the depositors can get their shares from the depository’s participants and not from the investors directly. These participants are also known as DP. They are like agents to the depositors and they are registered to the Securities Exchange Board of India or SEBI. Here HDFC bank is one such DP that holds the shares of your Demat account.
Steps to Close HDFC Demat Account Online/offline
There are two steps primarily through which you can close your Demat account. These steps are discussed accordingly.
Submitting an Application to branch
- You can easily find an application form on the website of the HDFC bank pertaining to the closing of the Demat account https://v1.hdfcbank.com/assets/pdf/Demat-Account-Closure-Form-(NSDL-CDSL).pdf.
- Next, you have to fill up details like the client ID, DP ID, name and address and the reason for closing the Demat account. Remember that this closure form has to be signed by all the holders.
- Any POA holder cannot sign this form.
- If there is any fund remaining in the account then it can be easily transferred to another account. You just have to provide the HDFC bank with the account details and all the money will be transferred.
- Also, you can get the remaining money by filling up the delivery instruction slip.
- After the submission of the application form, another 7 to 10 days will be required for the account to be closed.
- You will not be charged a single penny for the closing of the Demat account in HDFC bank.
- You must keep in mind that before closing the account, you must not have any negative balance in the account. If you have any, then you must pay the negative balance before closing the account.
Close HDFC Demat Account online by sending Email
- You can easily close your Demat account in HDFC bank by sending an email to their Demat closure mail id [email protected]. This mail must be sent from the registered email id.
- In the mail, you have to mention all the details related to the Demat account and you must also provide a valid reason as to why you want to close the account.
- You can get all the details mentioned above from the Demat page through net banking or in the nearest HDFC bank.
- Once the email is sent, they will close the account and confirmation regarding the same will be sent to you via email as well.
So, these are the two easy steps through which you can easily close your Demat account in the HDFC bank. You can choose whichever method you feel comfortable with. We hope that this article will help you with all the queries and the overall procedure of closing the Demat account.