How to Close Your Demat Account Easily: Dhan, Groww, & More Broker Guide

How to Close Your Demat Account: A Comprehensive Guide for Dhan, Groww, HDFC Sky, ICICI Direct, Angel Broking, Sharekhan, 5paisa, and Motilal Oswal

Having multiple Demat accounts can sometimes be cumbersome. If you’ve decided to streamline your investments or simply want to close an account you no longer use, it’s essential to understand the process for each brokerage. This guide will walk you through the steps to close your Demat account with popular brokers like Dhan, Groww, HDFC Sky, ICICI Direct, Angel Broking, Sharekhan, 5paisa, and Motilal Oswal. Whether you prefer online or offline methods, this detailed information will help you close your account efficiently and effectively.

General Prerequisites Before Closing Your Demat Account

Regardless of the broker you use, there are some common prerequisites you must fulfill before initiating the account closure process. These steps ensure a smooth and hassle-free experience:

• Clear Outstanding Dues: Ensure there are no negative balances or pending payments in your trading account. Clear any outstanding dues or fees before you proceed with the closure.
• Zero Holdings: Your Demat account should have no securities. This means you must either sell your existing holdings or transfer them to another Demat account.
• No Active Investments: Ensure there are no ongoing Systematic Investment Plans (SIPs), mutual fund investments, or bond holdings linked to the account you intend to close.
• Close Open Positions: Square off or transfer any open positions, including stocks, options, and futures contracts.

Once these conditions are met, you can begin the specific steps to close your Demat account with your respective broker.

Closing Your Demat Account with Dhan

Dhan offers both online and offline methods to close your Demat account. Here's how:

Offline Account Closure:

1. Download the Closure Form: Visit the Dhan website to download the Account Closure Form - Account Closure form
2. Fill the Form: Accurately fill out the closure form, including your DP ID (first 8 digits of your BO ID) and Client ID (last 8 digits of your BO ID), which can be found in your “Profile and Account Details” section of “My Profile”.
3. Sign the Form: Sign the form at the designated places.
4. Submit the Form: Send the completed and signed closure form to the address specified in the form.

Online Account Closure:

• An online account closure link is available on the Dhan website homepage under the "About Dhan" section.

Important Considerations for Dhan:

• Ensure your trading account has a zero balance.
• You must either sell or transfer all securities from your Demat account.
• The DP ID and Client ID are crucial for the process.

Closing Your Demat Account with Groww

Groww provides a straightforward process for account closure through their support team. Here are the steps to close your Groww Demat account:

1. Contact Support Team: Reach out to Groww's support team to initiate the closure process. They will guide you to close groww account.
2. No Active Holdings: Ensure there are no active stock holdings or positions in your Demat and trading account.
3. Submit Closure Form: Sign and submit the closure form as guided by the support team.
4. Request Complete Closure: If you also want to close your overall account, request a complete account closure after the Demat account is closed.
5. Ensure Zero Balances: Make sure you have no active holdings in mutual funds, fixed deposits, gold, Groww balance, or lending products.

Important Considerations for Groww:

• Account closure is permanent; you cannot open a new account with the same PAN on Groww again.
• Ensure all balances are at zero.

Closing Your Demat Account with HDFC Sky

HDFC SKY provides an in-app option to close your account. Here’s how to close your HDFC SKY Demat Account:

1. Login to the App: Access the HDFC SKY app using your login credentials.
2. Access Profile Settings: Tap on the hamburger menu (three horizontal lines) at the top left corner and then select 'Profile Settings'.
3. Select "Close My Account": Scroll down and find the “Close my account” option.
4. Provide Reason: Tap on “Close my account”, choose a reason, and tap “Proceed.”
5. Ensure No Holdings: Before proceeding, ensure that all positions are closed and that you have no Holdings, fund balance or any outstanding dues for a successful closure request.

Important Considerations for HDFC SKY:

• All positions must be closed before the request.
• Your account must have no holdings, fund balances, or outstanding dues.

Closing Your Demat Account with ICICI Direct

ICICI Direct allows for both basic account closure and transfer and account closure, depending on your circumstances.

Basic Account Closure:

1. Ensure Zero Balances: Verify that your account has no debit balances, is not linked to any active SIPs or mutual funds, has no negative balance, and has no open positions.
2. Submit a Request: Send a request to your depository participant. This can often be done online.

Important Pre-Closure Steps

Before starting the closure process, log into your Demat account and verify that you have zero holdings, no pending settlements, and no unpaid charges. Cancel any active market orders.

Required Documents & Process

1. Get the closure form from your DP's website or local branch
2. Submit these documents:
   • Completed closure form
   • Valid ID proof
   • Recent address proof
   • Cancelled cheque leaf
   • Latest photographs

Final Steps

• All joint holders must sign the form in person at the DP office
• Processing takes 7-10 working days
• Keep copies of all submitted documents
• Wait for closure confirmation from your DP

Note: For joint accounts, all account holders must be present during submission. Ensure you receive a confirmation once the closure is complete.

Transfer and Account Closure:

1. Transfer Securities: Transfer your securities to another Demat account. This requires an Intra DIS slip (for intra-depository transfers) or the “Off-Market transfer” option.
2. Obtain CML: Get the original Client Master List (CML) from your account, including the stamp, logo, and signatures.
3. Submit Transfer Form: Fill out the form with all necessary information, including your target client’s ID and details of the shares to be transferred.
4. Submit Documents: Submit all documents in person to your DP's office or mail them to their corporate headquarters.

Important Considerations for ICICI Direct:

• Ensure all shares with inactive ISINs are dematerialized.
• If your account is joint, all account holders must sign the closure form in front of a DP representative.
• The POA (Power of Attorney) holder cannot sign the closure request form.

Closing Your Demat Account with Angel Broking (Angel One)

Angel Broking, now Angel One, allows for an easy online account closure process. Here's how to close your Angel One Demat Account:

1. Access the Closure Request: Visit the Angel One website or navigate to the ‘Profile’ section on the Account screen of the app.
2. Select 'Close Demat and Trading Account': Scroll down to the bottom and click on ‘Close Demat and Trading Account’.
3. Read Disclaimer: Review the disclaimer and then proceed.
4. Wait for Processing: Your account closure request will be processed in 3 working days.

Important Considerations for Angel One:

• Account closure is permanent; you cannot open an account with Angel One within 90 days.

Closing Your Demat Account with Sharekhan

Sharekhan prefers offline account closure, though an online option is also available. Here's how to close your Sharekhan Demat Account:

Offline Method:

1. Visit Local Branch: Visit the nearest Sharekhan branch office.
2. Download Closure Form: Download the account closure request form from the Sharekhan website.
3. Fill Closure Form: Fill out the form accurately.
4. Submit Form: Submit the completed form to the branch representative.

Online Method:

1. Access Profile: Go to the profile option in the Sharekhan app.
2. Select Closure Request: Click on the closure request option.
3. Follow Instructions: Follow the on-screen instructions.
4. eSign: Complete the eSign process with your Aadhaar number.

Important Considerations for Sharekhan:

• Offline methods through a branch office are generally preferred.

Closing Your Demat Account with 5paisa

5paisa offers a straightforward online account closure process through both its app and website.

Through the App:

1. Login to 5paisa App: Login to your 5paisa account.
2. Go to User Menu: On the top left, click on “Your Name.”
3. Go to Manage: On the top right, click on “Manage.”
4. Select Demat Account Details: Select “Demat Account Details.”
5. Choose Closure: Select “Close my trading account & Demat account.”
6. Proceed: Click on ‘Proceed’ to confirm.

Through the Web:

1. Login to 5paisa Website: Access your 5paisa account through the website.
2. Go to Profile: On the top right, click on the Profile Icon.
3. Select Profile: Go to 'Profile'.
4. Go to My Profile: Click on 'My Profile'
5. Select Demat Account Details: Select “Demat Account Details.”
6. Choose Closure: Select “Close my trading account & Demat account.”

Online Steps:

1. Confirm Closure Request: After selecting the closure option, click on ‘Proceed’. Confirm your choice by selecting “Yes, I am sure.”
2. Mention Reason: Provide the reason for closing your account.
3. Continue: Click the “Continue” button.
4. Complete Stages: Ensure all stages are complete – ledger, stocks, mutual fund, and open positions (if any).
5. eSign: Click the “Continue” button to eSign the closure form.

Important Considerations for 5paisa:

• Ensure your ledger balance is zero.
• Sell or transfer all stock holdings.
• Redeem all mutual fund holdings.
• Close all open trade positions.

Closing Your Demat Account with Motilal Oswal

Motilal Oswal offers a basic account closure process for accounts with no holdings. Here’s how to close a Motilal Oswal Demat Account:

1. Download Closure Form: Visit the Motilal Oswal website and download the Demat account closure form.
2. Fill Details: Fill out the form with accurate information and gather your KYC documents.
3. Submit Documents: Submit the form and documents in person at the DP's office or mail them to their head office.
4. Signatures for Joint Accounts: If it’s a joint account, all account holders must sign the form in front of a DP official.
5. Check Balance: Ensure that your account has zero balance and no securities.

Important Considerations for Motilal Oswal:

• Physical submission of the closure form is required.

Conclusion

Closing a Demat account is a necessary step when you want to streamline your investment accounts or exit trading. By following these detailed guidelines for Dhan, Groww, HDFC Sky, ICICI Direct, Angel Broking, Sharekhan, 5paisa, and Motilal Oswal, you can ensure a smooth and efficient process. Always remember to check for zero balances, no holdings, and to complete all required steps before submitting your closure request. With the right approach, closing your Demat account can be a hassle-free experience.