A demat account is a must-have for investors who want to trade in the securities market. However, holding multiple demat accounts can be costly due to annual fees and maintenance charges. As a result, it's advisable to close any zero balance or inactive accounts.

To close a demat account, you'll need to follow a few steps. 

• First, you'll need to download a closure form from your depository participant's (DP's) website. Next, you'll need to fill out the form and submit it along with your Know Your Customer (KYC) documents, such as proofs of identification and address. The form and documents can then be submitted to the nearest branch or mailed to the DP's headquarters.
  

You can download the account closing form for NRI and Residential account

For NRI: https://www.kotaksecurities.com/whatweoffer/PDF/Ac-closing-Feb-2013.pdf

For Residential: https://www.kotaksecurities.com/whatweoffer/PDF/Account-Closure-Trading.pdf

• When submitting the closure form, make sure to include your DP ID and client ID, KYC details that match your records, and the reason for closing the account. If there are multiple holders of the demat account, all holders must sign the closure form.
• If a remaining balance or securities is held in the demat account, you'll need to settle any payments and transfer the securities to another demat account before closing. To transfer securities, complete a delivery instruction slip (DIS) and submit it to the DP's Head Office or nearest branch along with the closure form, the target DP's original client master list (CML), and other required documents.
• After submitting the closure form and required documents typically takes 7-10 working days to close a demat account. There are no fees associated with the closing process of a demat account.

In the situation of remaining balance or holding in demat or trading account closing process

• Before closing your demat account, make sure the account is empty and has a zero balance. If the account has a negative balance, settle it before closing. Also, remember to return any unused DIS booklets to the DP along with a closure letter.
• If the demat account holds dead ISINs, which are specific IDs for a company's shares that are no longer traded in the stock market, you'll need to apply for their dematerialization through your DP. Your DP will forward the request to the concerned depository, who will then inform the registrar and take steps to dematerialize the shares.

Conclusion

Closing a demat account requires submitting a closure form along with KYC documents and ensuring that no remaining balances or securities are held in the account. It typically takes 7-10 working days to close an account, and there are no charges for doing so. Remember to follow any guidelines provided by your DP and return any unused DIS booklets to the DP.