Can I close my demat account and keep my trading account open?
No, you cannot close your demat account and keep your trading account open. You need to have at least one demat account linked to the trading account. A demat account is required even if you trade:
- Equity intraday- As open intraday positions can go into delivery if the position is not closed before the end of the day. These shares are required to be settled to your demat account.
- F&O contracts- All Stock F&O contracts starting from October 2019 are being settled physically, which requires the stocks to be settled to a demat account in case of a take delivery position and debited from the demat account for give delivery positions. You can read more about the physical settlement of stock F&O contracts here.
Note: In case you have multiple demat accounts linked to your trading account, you can close all additional demat accounts as long as you have one demat account linked.