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popeyemask

what happens if trading or demat account not closed

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You keep paying the DMAT provider yearly money as part of AMC unless it was a life time free one.

Trading accounts shd ideally become dormant if not used for n years, but it won’t happen. It will remain active I guess. Nothing will happen IMO.

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I asked my broker he said it’s a dormat account and u have to pay 750 charges …
If I don’t pay anything could happen??

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Deal Subedar Deal Subedar
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@amritreymatt683 Bro, you may not be aware of powers brokers have. If you don’t use either change it to BSDA i.e Basic Service Demat Account after which you wont be charged anything on yearly basis or close it.

Come to legality:

If you keep your account inactive and don’t pay yearly charges then most brokers send legal notice through their lawyers. In past I had two demat accounts in my name. Stopped using one in 2005. After three years got a notice to either pay or face consequences. At that time it was Rs.450+S.Tax. For three years it was around Rs.1700 but demand was sent for Rs.10000.00 including late payment interest at 18% and legal charges. I didn’t replied back and went straight to company’s office in Chandigarh and in their system charges were Rs.1330 only as debit. Issued them cheque and filled closing form. Matter ended. That was a lucky escape as the person in office didn’t checked that my account was under legal action. smile

So from that day I never ever leave things idle either it be any kind of account like bank, I close when I am not going to use. Even banks have right to claim pending dues even after 10 years. stuck_out_tongue

Generous Generous
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Are you talking about sharekhan?
You got scared of fake legal notices.
Loads of them were sent by rcom for their stupid services.
Even i got 3 demat account. Which cant be converted to basic because acc to sebi only one account need to be opened in cust name. Sharekhan converted by 10years old account to normal one. Sending sms with 400+tax annual fees.
Problem is even if want to close in their way my signature wont match.
They want to get signature corrected and then close account. I sent them email with whomesoever notice telling that i wont be liable for any charges after this.
Let them sue me for this small amount. If it was that easy bank wont be closing dormant saving account. I never agreed to their credit services. So after the first year of non payment my account should be stopped. Yes for 400 +interest they can sue me.
Go prove in the court. Because intent is clear. You want to grab money by not closing the account. I am sending written communication via reg email to close account. You can send statement there but cant receive communication from there.
Dont get scared. They cant get a penny from you.

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Analyst Analyst
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Also if broker is from psu bank you can solve matter in lok adalat by paying a very nominal amount and close account. I myself paid 140 rs for 2300 odd for sbi demat in a lok adalat because I had proof of closer as email but sign didn’t match and they didn’t close it but never informed me. So when recently sms started to come I had some work in sbi main branch where this demat trading office was, they asked to come in lok adalat which was on Saturday and I was free. I was charged 5% plus gst and some charges and paid 140. I was reluctant to pay any amount and compromise started from 50%. I knew they can’t do anything and kept saying no. finally sone stamp charges, 5% and gst, account closer on spot made the deal go through. wink

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lok adalat is also voluntary i hope you know.
It’s named that way just to scare people.

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