Changing Zerodha Demat Account: Process and Procedures

Many investors are curious about the possibility of changing their Zerodha Demat account, particularly if they only wish to maintain a trading account with this platform. However, it is important to note that Zerodha does not offer a 'trading only' account. This article will provide detailed instructions on how to either close your existing Demat account or transfer your shares to a new Demat account while maintaining your Zerodha trading account.

Why Changing a Zerodha Demat Account is Not Allowed

According to Zerodha's guidelines, it is not possible to change your Zerodha Demat account separately. This is because all transactions require a valid Demat account to hold shares. Without a Demat account, it is impossible to manage your trades accurately and ensure timely dividend distributions. Therefore, if you plan to close your Zerodha Demat account, you must ensure that your shares are transferred to another authorized Demat provider.

Transferring Shares to a New Demat Account

If you wish to keep your Zerodha trading account but change your Demat account, you can do so by transferring your shares to a new Demat account. This process requires a few steps:

Option 1: Same Depository

If the two Demat accounts under consideration are managed by the same depository, such as NSDL or CDSL, you can initiate the transfer of shares online after registering with the new Demat account. Here are the steps:

tRegister with a new Demat provider under the same depository. tTransfer the shares to the new Demat account online. tSubmit a request to close your existing Demat account.

Option 2: Different Depositories

If the depositories are different, such as CDSL and NSDL, you need to follow these additional steps:

tSubmit a debit instruction slip (DIS) to your current Demat provider to transfer your shares to the new Demat account. tInitiate the off-market transfer process, which can take up to 2 days. tSubmit a request to close your existing Demat account. tPay any pending charges before the transfer and account closure.

Once your Demat account is closed, you can also submit a request to close your trading account.

Linking Existing Demat Account with Zerodha

You cannot link your existing Demat account with Zerodha. Your trading and Demat accounts will open separately. Zerodha's trading account will be with Zerodha, and your Demat account will be with CDSL Central Depository Services Ltd. However, if you do not wish to retain your existing Demat account, you can always transfer your holdings to the Zerodha Demat account once you open it.

Opening a Zerodha Account

Zerodha's online account opening process is straightforward and quick. You can open a trading and Demat account online by visiting the official Zerodha website. Here are the steps:

tVisit the official Zerodha website. tClick the 'Open Account' button. tFollow the on-screen instructions to complete the account opening process.

For detailed guidance, refer to the official Zerodha documentation available on their website.