How to deactivate or transfer Demat account online?
Do you want to deactivate your depository account or transfer Demat account from one depository participant to another? Let's learn the process to deactivate your depository account and charges levied on transfer of depository account from one DP to another.
If you want to sell or purchase shares then you need a depository account. When you purchase shares then broker transfer those shares in your depository account. Similarly when you sell shares then you transfer those shares in your broker's depository account. Investors can keep their shares in electronic form in any one of two depositories: Central Depository Services Limited (CDSL) and National Depository Services Limited (NDSL).
Many investors open multiple number of Demat accounts arbitrarily. Thus they have to pay annual maintenance charge on each account. Let's study how to deactivate depository account or how to transfer depository account.Process to transfer or deactivate depository account
If you have sold all the shares in your depository account and now there are no shares in your account or if you are unsatisfied with the services of your depository participant, then you can deactivate your account. However, before deactivating your Demat account, ensure that there are no shares in it. If there are any shares in your account, then you can transfer them in another depository account or Remat (convert shares into physical form) them. If there are infrastructure bonds in your Demat account with lock-in period of 5 years, then you have to convert them into physical form before deactivating your account. Also consider that there is no negative cash balance in your account due to no payment of annual maintenance charge.
You can transfer your depository account from one to another as per your liking. For this purpose, you have to submit an application with the depository participant in a prescribed format along with Annexure Q. You have to provide detailed information of new depository participant in application form, along with the slip of unused instructions received from depository participant.
Depository participant will transfer all of your shares in your new account within 3-5 days of the approval of application. If your present depository account name is same as the new depository accounts then no charge will be levied by depository participant on transfer of shares. But the names in present and new depository accounts are different, and then charge will be levied on transfer of each share in another account.