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There can be various reasons for trading account closing. Normal, trading account closing is done when you don’t want to operate in stock markets any longer or don’t want to trade through that broker any longer. There is a formal process to close a trading account and you need to go through that process. For example, before you close a trading account, ensure that there are no dues. Also, trading account closure will not happen if there are pending disputes over margins, charges, etc.
Trading account closing must begin with a formal request made to a broker in a specified format. Such a form to close the trading account is normally available on the website of the broker itself. Here is the process.
Before you submit the account closure form, ensure that all dues are cleared including pending margin charges, Demat charges, pay-in debits, etc. Unless this is done, the trading account will not be closed. The process of trading account closure normally takes about a week.
Before you close a trading account, remember that closure is a cessation of the broking relationship with that broker. In case it is just a pause, you can even deactivate your trading account. Once the account is closed, it cannot be reactivated but you then have to open a fresh trading account after going through the regular KYC process again.
There are two ways to close a trading account; offline and online. In the offline method, you can close your trading account by submitting the account closure form. This form is normally available on the website, which you can download and print and submit. The other option is to e-sign and submits the account closure form online.
In case you are looking to close your trading account along with the Demat account, as is normally the case, there are 2 things to ensure. Firstly, ensure no Demat charges are pending and no stocks in your Demat account. Alternatively, you can also give a closure cum transfer request to the broker. Such stocks will be only moved based on matching name, PAN number, Aadhar number, etc.
The process of account closure is quite simple and just follows the normal process.
Brokers are normally hungry for clients and no broker wants to lose clients. Hence most brokers will try and dissuade you from closing your trading cum Demat account. However, in case you have decided not to continue, the broker has no choice but to process your closure request, subject to there being no dues on the account. However, if the broker still finds reasons to not close your trading account, here is what you can do.
As a first step, write to the broking head with documentary proofs and account status details. Normally, at this stage, the request will be processed within a week if all else is clear.
As a second step, you can escalate the issue of non-closure of the trading account to the CEO and authorized Compliance Officer of the broking house. Mention the trail and the fact that you have escalated to the broking head. Take acknowledgments of all such submissions. Compliance officers must report complaints and non-resolutions to the stock exchange and SEBI regularly. Cases rarely cross this stage in most cases.
The next step is regulatory escalation if no progress after writing to the broking head, compliance officer, and the CEO. Normally, if the dispute is regarding the Demat issue, escalate to NSDL or CDSL. If the issue pertains to the trading account, escalate to NSE / BSE.
If at this stage, you still don’t find any progress, you can file an official complaint with the SEBI SCORE system and note down the reference number. This should be a last resort if the broker is still not closing your account despite reminders from the depository and the exchange. SCORE system is online and is available on the SEBI website. It also provides an automated audit trail.
Finally, don’t forget to put pressure on social media and various discussion forums. Now there is no guarantee this will work, but companies are becoming increasingly conscious of their social media presence, so it helps to build public opinion quickly and in an economical way. You can use forums like Twitter handles, Facebook pages, LinkedIn groups.
The first step to buying and selling shares is to ensure that your trading account is funded either with cash margins in case of purchase or stock margins in case of sale. The buy and sell can be executed through basic 2-level authentication of the trading account and then placing orders on the stock/price level/quantity of your choice using a share market app.
Take a signed statement of dues from your broker / DP and pay the amount via cheque or via online transfer. Avoid cash payments.
There are no charges to close the trading account except that outstanding dues have to be settled before trading account is closed.
The normal process if no dues is that it takes 7-10 days to close the trading account.
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