How to Deactivate or Close Demat Account in India – Complete Process 2025

How to Close or Deactivate a Demat Account Properly

If you’re no longer using your Demat account or wish to switch to a more affordable, efficient platform like One Solution, it’s important to close your existing account properly. Leaving an unused account open can lead to unnecessary charges and compliance issues.

This blog explains when and how to close a Demat account in India—step by step.

When Should You Close a Demat Account?

You may want to close your Demat account if:

• You’ve switched to a better broker

• You have multiple Demat accounts and want to consolidate

• You’re not actively investing anymore

• You’re incurring annual maintenance charges for an inactive account

Important Things to Do Before Closure

1. Ensure zero holdings – Sell or transfer all securities

2. Clear all dues – No pending charges or penalties

3. Download your transaction statement – For record-keeping

4. Verify linked bank account details – To avoid delays in fund settlement

Step-by-Step Process to Close a Demat Account

1. Download the Closure Form

Get the Demat account closure form from your broker’s website or branch office.

2. Fill in Required Details

• Client ID

• DP ID

• PAN number

• Reason for closure

• Signature (all holders, in case of joint accounts)

3. Attach Necessary Documents

• Self-attested PAN copy

• Canceled cheque for bank verification

• Latest Demat account holding statement

4. Submit the Form Physically

The form must be submitted in hard copy to your DP (Depository Participant).

Digital closure is not yet allowed under SEBI norms.

5. Account Closure Confirmation

Once verified, the broker will process the request within 7–10 business days. You’ll receive a final confirmation via email or SMS.

Difference Between Freezing and Closing an Account

• Freezing: Temporarily disables buying/selling but keeps the account active

• Closing: Permanently deactivates the account, ending all services and charges

Switch to One Solution Before Closing Your Old Account

Before closing your old account, open a new one with a trusted and cost-effective provider.

At One Solution, we offer:

• Free Demat account opening

• Low brokerage across all segments

• Seamless share transfer support

• Fast onboarding with Aadhaar-based KYC

• Personalized assistance for switching and closure

Final Thoughts

Closing a Demat account isn’t difficult—but doing it properly avoids future costs and compliance issues. If you’re not satisfied with your current broker, take a smarter step by switching to One Solution before you close your old account.

Move smarter. Invest better. Get started with One Solution today.