If you have a Demat account with HDFC and you would like to close it, there are a few steps you need to follow. Closing a demat account can be a bit of a hassle, but with the right guidance, you can save yourself from unnecessary stress. In this article, I will walk you through the steps you need to take how to close HDFC demat account and make the process as smooth and stress-free as possible.
Before diving into the steps, it’s worth mentioning that there are a few things to consider before closing your HDFC demat account, such as outstanding bills, unsettled trades, and shares that need to be transferred. You should make sure all your dues are cleared and all pending transactions are completed. Additionally, you should ensure that you have a zero balance in your bank account connected to the Demat account before you initiate the closing process. Now, let’s look at the steps to follow to close your HDFC demat account.
Step by Step Guide to Closing Your HDFC Demat Account
If you’re considering closing your HDFC Demat account, there are certain steps you’ll need to follow in order to complete the process. Here is a step-by-step guide to help you close your account:
- Clear All Outstanding Dues: The first and foremost step to closing your HDFC Demat account is to clear any outstanding dues that you may have. You won’t be able to close your account if there are any outstanding dues.
- Submit A Request: Once your dues are cleared, the next step is to submit a request to close your account. You can do this by visiting your nearest HDFC Bank branch or logging into your account on the HDFC website.
- Fill Out The Closure Form: Once you reach the HDFC Bank branch or website, you must complete a closure form. This form will require you to provide certain details related to your account.
- Submit The Closure Form: Once you have filled out the closure form, you will need to submit it along with any other required documents that may be needed to close your account. These documents may vary based on the reason for closing the account.
- Await Confirmation: After you have submitted the required documents, you will need to wait for confirmation from the bank regarding the closure of your account.
- Transfer Your Securities: Once you receive the confirmation, the last step is to transfer your securities to another Demat account or convert them into physical form and take them back.
By following these steps, you can easily close your HDFC Demat account. It’s important to note that the process may take some time, so be patient and keep track of any updates from the bank.
Thank you for the reminder. Here’s the section on “Checklist Before Closing Your HDFC Demat Account”:
Checklist Before Closing Your HDFC Demat Account
Closing a demat account can seem like a daunting task, but with careful preparation and attention to detail, it can be a smooth and stress-free process. Before you proceed, here are a few important points to keep in mind:
- Clear all dues: Ensure that there are no pending obligations or dues attached to your demat account. This includes unpaid fees, charges, or any penalties. Make sure to settle all outstanding amounts before initiating the closure process.
- Redeem or transfer securities: Before closing your account, redeem or transfer all the securities held in your demat account to another demat account. This includes shares, bonds, mutual funds, or any other financial instruments held in the account.
- Cancel standing instructions: If you have set up any standing instructions or auto-debits linked to your demat account, ensure that you cancel them before initiating the closure process. This will help avoid unnecessary charges or debits after the account closes.
- Update personal details: Ensure that your personal details, such as an address, mobile number, and email ID registered with HDFC Securities, are updated and accurate. This is important as any communication regarding the closure process will be sent to the registered details.
- Submit closure request form: Finally, submit a duly filled and signed Closure Request Form available on the HDFC Securities website or at any of their branches. You will need to provide details such as your account number, registered details, reasons for closure, and signature. After submitting the form, it may take up to 7-10 working days for the account closure process to be completed.
By following these simple steps and ensuring that all requirements are met, you can ensure a smooth and hassle-free closure of your HDFC Demat Account.
Before beginning the account closing process, you should gather the following documents:
- A Demat account closure form
- An ID proof document, such as PAN Card, Aadhaar Card, or Passport
- Proof of bank account linked with the Demat account, such as a Cancelled cheque or a Bank statement
- A copy of the DP ID and Client ID of the Demat account
Ensure that all of the documents are valid and up-to-date.
Steps to Follow
After gathering the necessary documents, follow these steps to close your Demat account with HDFC:
- Visit the HDFC website and download the Demat account closure form.
- Fill out the form completely, providing your DP ID and Client ID, Bank Account details, and a valid reason for closing the account.
- Sign the form and affix a recent passport-size photograph to it.
- Attach the ID proof and bank account proof documents to the filled form.
- Submit the form at the HDFC Bank branch where you hold your Savings account.
It might take several working days for HDFC to process your request. Once the account is closed, you’ll receive a confirmation message from HDFC.
Closing your HDFC Demat account isn’t difficult, provided you have all the necessary documents and follow the correct steps. You can complete the process smoothly by keeping these essential requirements in mind.
To initiate a Demat account closure request with HDFC, a few steps need to be followed. First and foremost, ensure that no shares or securities are held in the account. If there are, you will need to sell them or transfer them to another Demat account before proceeding with the closure request.
Once you have confirmed that the account is empty, download the “Account Closure Request” form from the HDFC website or visit your nearest HDFC Securities branch to collect a physical copy of the form. Fill in all the required details, including your personal information, Demat account number, and reason for the closure.
It is important to note that HDFC charges a fee for processing Demat account closure requests. As of September 2021, the closure fee is Rs. 750 plus taxes. Make sure to keep this in mind before initiating the closure request.
Once the form is filled out and all necessary fees have been paid, submit the form to your nearest HDFC Securities branch. Make sure to carry valid identification documents such as a PAN card and an Aadhaar card for verification purposes.
After submitting the form may take up to 7-10 business days for the account to be officially closed. You can verify the closure status by following up with HDFC customer care or logging into your HDFC Securities account.
It is important to make sure that all necessary steps are followed, and all fees are paid before initiating the Demat account closure request with HDFC. By carefully following these steps, you can securely close your Demat account with HDFC without any hassle.
For those of you who are thinking about closing your HDFC demat account, here is a timeline of what you can expect during the process. Keep in mind that while the process is straightforward, it can take some time. So it’s important to start as soon as possible and plan accordingly.
Timeline for Closing Your HDFC Demat Account
Step 1: Submit a request for account closure
The first step in closing your HDFC demat account is to submit a request for account closure. This can be done online through the HDFC Securities website or in person at an HDFC Securities branch. Once you submit the request, you will receive a confirmation receipt that includes a reference number for your records. Keep this reference number handy, as you’ll need it for future correspondence with HDFC Securities.
Step 2: Settle outstanding dues
Before HDFC Securities can close your demat account, you must settle any outstanding dues you may have. This includes paying off any borrowed funds or interest owed, if applicable. You will receive a dues statement from HDFC Securities, detailing everything you need to pay. Once you settle your dues, you will receive a confirmation receipt.
Step 3: Submit the required documents
After settling your dues, you will need to submit certain documents to HDFC Securities. These include a copy of your demat account closure request letter, a government-issued ID proof, and a cancelled cheque from your bank account. Make sure to provide all the required documents accurately and promptly.
Step 4: Wait for account closure
Once HDFC Securities receives all the required documents, they will begin processing your demat account closure request. This can take up to two weeks. During this time, you can expect to receive updates on the status of your request via email or SMS.
Step 5: Receive confirmation of account closure
Once your HDFC demat account is successfully closed, you will receive an email or physical mail confirmation. Make sure to keep this confirmation safe for future reference.
Remember that while closing your HDFC demat account may seem daunting, it can be done easily if you follow the above timeline. If you have any questions or concerns during the process, don’t hesitate to reach out to HDFC Securities for assistance.
When you close your HDFC Demat account, it’s important to understand what happens to your securities and funds. Here’s what you need to know:
What Happens to Your Securities and Funds After Closing Your HDFC Demat Account
- Securities: The first thing that happens is that any existing securities in your Demat account will be transferred back to you in physical form. This process usually takes around 15 days from the date of closure. HDFC will send the certificates to your registered address via courier.
- Funds: Any funds that you might have in your Demat account will be transferred to your linked bank account. The process typically takes 3-5 business days from the account closure date.
- Charges: HDFC Bank charges a fee for closing a Demat account – this fee varies based on your account type. It’s important to note that the fee will be deducted from your account balance at the time of account closure.
- Taxes: If you have made any capital gains from the sale of securities held in your Demat account, you’ll need to pay capital gains tax as per the applicable rules and regulations. It’s important to note that tax liability will only arise if your account has taxable gains.
- Reopening: If you decide to open another Demat account with HDFC in the future, you can use the same DP ID and Client ID. However, you’ll need to submit a new account opening form and complete the necessary KYC formalities.
Closing your HDFC Demat account is a simple process, but it’s important to understand what happens to your securities and funds. By following the steps outlined above, you can ensure a hassle-free closure of your account.
Recovery of AMC and Other Charges After Closing Your HDFC Demat Account
If you plan on closing your HDFC Demat account, there are a few things to remember regarding the recovery of Annual Maintenance Charges (AMC) and other charges. Here’s a brief overview of what you can expect:
- Recovery of AMC charges:
After closing your HDFC Demat account, the AMC charges will be calculated on a pro-rata basis up to the date of account closure. You will need to pay these charges before closing your account. The amount of AMC charged will depend on the account type and the account operation duration.
- Recovery of additional charges:
Other charges, such as pledge creation charges, Demat rejection charges, and account reactivation charges, may also be applicable. Like the AMC charges, these charges will be calculated on a pro-rata basis up to the date of account closure.
- Holding charges:
If any securities remain in your Demat account, then holding charges will apply as per the charges applicable for holding those securities in your account. These will continue to accrue even after account closure until the remaining securities are transferred out of the account.
- Time is taken for recovery of charges:
It typically takes around 10-12 days to recover all the charges after initiating the account closure request. The amount recovered will be credited to your bank account registered with the Demat account.
- Tax implications:
Keep in mind that AMC and other charges are generally non-refundable and can’t be claimed as a tax deduction. You will need to factor in these charges while calculating the gains or losses from your investments.
In summary, if you’re closing your HDFC Demat account, be prepared to pay pro-rata charges for AMC and other applicable fees. There may also be holding charges if any securities are remaining in your account. It’s important to remember these charges while closing your account to avoid any surprises later on.
How to Avoid Account Inactivation Charges
Closing a Demat account comes with certain charges that you have to pay. One of these charges is the account inactivation charge. Before you close your HDFC Demat account, make sure that you follow these steps to avoid the inactivation charges:
- Check for any open positions: Before closing your Demat account, make sure that you do not have any open positions in your account. If you have any open positions, you will have to either sell or transfer the holdings. Any open positions may delay closing your account, and you will continue to incur charges until the positions are closed.
- Clear any dues: Ensure you clear all your dues with the depository participant (DP), not just the stockbroker. The DP may charge a fee for not settling the dues on time.
- Submit a closure request: Submit a closure request with the DP and make sure that you have all the necessary documents in place, including the unused delivery instruction slips, DIS booklets, and any other documents that the DP may have given you.
- Close all linked accounts: Make sure that you close all your linked accounts, such as a trading account, bank account, and any other accounts that are linked to your Demat account, to avoid any future deductions or charges.
- Ensure proper communication: Make sure that you have proper communication with the DP. Keep a record of all the communication made with your DP, including email exchanges and phone calls. This will help you to document any discrepancies that may arise during the closure process.
By following these steps, you can avoid any inactivation charges that may be levied on your HDFC Demat account. Keep in mind that closing a Demat account comes with certain charges, and you should be aware of them before taking any steps toward closing your account.
FAQ about How to Close HDFC Demat Account
Can I close my HDFC Demat Account online?
Yes, you can initiate the closure of your HDFC Demat Account online through the HDFC Securities website. You need to fill out the account closure form and submit it online, along with a scanned copy of the required documents. After the verification, your account will be closed, and the remaining balance, if any, will be credited to your linked bank account.
What documents are required to close an HDFC Demat Account?
To close your HDFC Demat Account, you need to submit a written request for account closure along with the following documents:
- Copy of the PAN card
- Copy of the latest bank statement showing your bank account details (for receiving the balance amount, if any)
- Copy of the unused Delivery Instruction Slip (DIS) booklets (if any)
Is there any penalty for closing an HDFC Demat Account?
No, there is no penalty for closing an HDFC Demat Account. However, you may need to pay a demat account closure charge, which is generally around Rs. 500.
Can I transfer my securities to another demat account before closing my HDFC Demat Account?
Yes, you can transfer your securities to another demat account before closing your HDFC Demat Account. To do this, you need to provide the details of the target demat account in the account closure form and submit it along with the required documents.
How long does it take to close an HDFC Demat Account?
The time taken to close an HDFC Demat Account depends on the verification of the documents and the clearance of any dues. Generally, it takes around 7-10 days to close the account after the submission of the account closure form and the required documents.
What is the process for closing a joint HDFC Demat Account?
The process for closing a joint HDFC Demat Account is the same as that for an individual account. However, all the account holders need to sign the account closure form and submit their respective documents.
Can I close my HDFC Demat Account if I have pending transactions?
No, you cannot close your HDFC Demat Account if you have pending transactions. You need to settle all the dues and complete all the pending transactions before initiating the account closure process.
What happens to the securities held in my HDFC Demat Account after it is closed?
After your HDFC Demat Account is closed, the securities held in the account will be transferred to the depository participant’s pool account (NSDL or CDSL) and will be available for rematerialization or for transfer to another demat account.
Can I reopen my closed HDFC Demat Account?
Yes, you can reopen your closed HDFC Demat Account. To do this, you must submit a fresh account opening form and the required documents and pay the account opening charges. However, you must apply for reactivation within two years from the account closure date.
Closing an HDFC Demat account is a fairly simple process that can be done both online and offline. However, it’s important to note that certain fees or charges may apply, depending on the specific account and account holder.
Before initiating the account closure process, reviewing any pending transactions is recommended, ensuring that all account holdings have been transferred or sold, and clearing any outstanding dues or charges. Once this has been done, the account closure request can be submitted through the official HDFC Securities website by sending a signed closure form to the registered office address or by visiting any HDFC Securities branch in person.
It’s advisable to keep a copy of the closure request and any supporting documents for future reference. After the request has been successfully processed, the account holder will receive a confirmation message or email. The account will be officially closed within a few days, depending on the chosen mode of closure.
In case of any issues or concerns during the account closure process, account holders can contact HDFC Securities customer support for assistance. While closing a Demat account may seem daunting at first, a clear understanding of the process and timely action can help simplify the task.