The first requisite to shut a demat account is that the stability within the account needs to be nil. Which means it’s important to exit or switch all of the shares held in that account. Do test you probably have shares of firms which might be not listed available in the market. The method to exit such shares is comparatively simpler in circumstances the place firms delist from the inventory exchanges voluntarily.
“If the corporate delists voluntarily, the account holder will get one yr time to strategy the RTA (Registered Switch Agent) and tender the shares by means of an offline course of. The corporate must honour the delisting worth. If the corporate has been delisted for over a yr, the shareholder can strategy the corporate and enter into a personal negotiation to promote the shares again to the promoters. This might be an off-market transaction and the value might be decided between the customer and vendor,” mentioned a spokesperson for ICICIdirect .
The account holder additionally has the choice to re-materialise the shares by changing them from digital to paper kind. For this, they should strategy their DP (Depository Participant) with a re-materialisation request for every of the corporate they maintain a share of. The ICICIdirect spokesperson mentioned it is a lengthy drawn course of and might take about 4-6 weeks, relying on the corporate.
Nevertheless, re-materialisation is not going to undergo if the corporate doesn’t reply, which usually occurs when the corporate is involuntarily delisted. In such circumstances, the shopper can switch the stability to a special demat account utilizing a supply instruction slip.
The identical process is to be adopted for listed shares with skinny buying and selling volumes, making it troublesome for the investor to promote them. “The investor must maintain making an attempt on-line to promote them. Alternatively, they’ll reward these shares or switch the stability to a different demat account,” mentioned a Zerodha spokesperson.
There may be situations the place an investor holds shares of an entity which isn’t listed–within the type of ESOPs or by the use of demerger from a listed entity. The investor can shed such shares solely by means of off-market transactions. “Such buyers can get in contact with specialised brokers who cope with unlisted shares,” the ICICIdirect spokesperson mentioned.
As soon as the stability is nil, the account holder can shut the account on-line. “The client has to go to DP workplace in the event that they don’t have an Aadhaar-linked cellular to signal closure request, if it’s a joint demat account, or if account is a non-individual one,” mentioned the spokesperson for Zerodha.
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