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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

NSDL - Guidelines for Transfer cum closure of demat account

04-Jul-2025 | NSDL/POLICY/2025/0089

NSDL has issued a circular regarding Guidelines for Transfer cum closure of demat account effective from 14 July 2025. By virtue of this circular, it has been specified regarding the procedure for processing transfer cum closure of demat accounts: 1.The request for closure of a demat account shall be made using a duly completed and signed Form 34. Upon receipt of the request, and provided there are no outstanding dues, Participants shall process the closure or transfer-cum-closure requests in the DPM system within two working days. 2. If the client has outstanding dues at the time of submitting the request, a communication shall be sent to the client in the specified format. The client must clear the dues within a maximum of 30 calendar days. 3. Logs and audit trails of all transactions processed, and communications sent to the Clients shall be maintained by the Participant and included within the scope of the internal audit of the Participant. 4. In cases where the closure request is pending due to unresolved balances, such as pending demat/remat/conversion requests, pledgor/pledgee balances, etc., the account status shall be updated to "To Be Closed' in the NSDL depository system. (Note - The necessary system changes and effective date of implementation of aforesaid guidelines specified in Point Nos. 3 and 4 will be communicated separately) Kindly refer to the attached document for more information.

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