Changing your broker or closing an inactive Demat account doesn’t mean you have to sell your investments. With the Closure-cum-Transfer facility, you can close your existing Demat account and seamlessly transfer all holdings to another Demat account—simple, safe, and tax-efficient.
What is Closure-cum-Transfer?
Closure-cum-Transfer is a facility that allows an investor to close a Demat account while transferring all securities (shares, mutual funds, ETFs, bonds, etc.) to another active Demat account in one single request.
It is the most convenient option when you wish to change brokers without disturbing your investments.
When Should You Opt for Closure-cum-Transfer?
You may choose closure-cum-transfer if:
- You are switching to a new broker
- Your current Demat account is inactive
- You want to consolidate multiple Demat accounts
- You are dissatisfied with your existing broker’s services
Key Conditions to Remember
Before submitting your request:
- The target Demat account must be active
- Name, PAN, and holding pattern must match in both accounts
- No outstanding dues or pending transactions
- All unused DIS slips must be returned (if applicable)
Documents Required
- Closure-cum-Transfer Request Form
- Client Master Report (CMR) of the target Demat account
- Self-attested PAN and Aadhaar copies
- DIS booklet (if issued by the broker)
Closure-cum-Transfer Process (CDSL & NSDL)
Step 1: Fill the Closure-cum-Transfer form
Step 2: Mention Target DP ID and Client ID
Step 3: Attach signed CMR of the target Demat account
Step 4: Submit documents to your current DP
⏳ Transfer is usually completed within 5–10 working days, subject to verification.
Charges Applicable
- Demat account closure: Usually free
- Transfer charges: As per broker/DP tariff (per ISIN)
- Stamp duty: As applicable
Why Closure-cum-Transfer is a Smart Choice
✔ No need to sell shares
✔ No capital gains tax
✔ Smooth broker change
✔ Safe and regulated process
✔ One-time documentation
Frequently Asked Questions (FAQs)
1. What is Closure-cum-Transfer in a Demat account?
It is a process to close a Demat account and transfer all holdings to another active Demat account in one request.
2.Can I close my Demat account without selling my shares?
Yes. Closure-cum-Transfer allows transfer of shares without selling.
3. Is inter-broker transfer allowed?
Yes. You can transfer holdings to a Demat account with a different broker.
4. Can shares be transferred between CDSL and NSDL?
Yes. Inter-depository transfer between CDSL and NSDL is permitted.
5. Can I transfer partial holdings and close my account?
No. All holdings must be transferred for account closure.
6. How long does the Closure-cum-Transfer process take?
Generally, it takes 5–10 working days.
7. Are there any charges for Closure-cum-Transfer?
Account closure is mostly free; transfer charges depend on the broker.
8. What are common reasons for rejection?
Signature mismatch, incorrect DP/Client ID, pending dues, or inactive target account.
9. Is there any tax implication on Closure-cum-Transfer?
No. Since securities are not sold, there is no capital gains tax.
10. Can a closed Demat account be reopened?
No. Once closed, a Demat account cannot be reopened.
Conclusion
Closure-cum-Transfer is the most efficient and investor-friendly way to close a Demat account without affecting your investments. With proper documentation and an active target account, the process is smooth and hassle-free.