demat account closure

POSTED BY Srinivasan Jambunathan ON May 17, 2013 4:14 pm COMMENTS (3)

Dear forum members,

My father aged 70 yrs is having a Demat account with ICICI. He has sold all his share holdings currently and wants to close the account. However he has a 4 IDFC Infrastructure Bonds that will mature in Nov 1025 in his Demat account. When he went to the ICICI branch to close the account, he was told that he has to first sell his IDFC bonds. Only after that the account can be closed. Could you please advice if this is true.

Is it possible to sell the IDFC bonds before Nov 2015.

Is there no way to close his Demat account before Nov 2015. He will be unnecessarily incurring maintenance charges on the account if he keeps it open.

Please advice.

Thanks,

Srinivasan

3 replies on this article “demat account closure”

  1. Dear Srinivasan, sorry to say but as these Infra bonds were purchased by your father for tax saving purpose, these are neither transferabel nor can be sold. the only option left is to convert these bonds into Physical ones. for that contact IDFC & bond registrar (I think it’s Karvy but please do check with IDFC).

    Only after converting the bonds into physical, your father’s demat account balance ‘ll become nil & your father can now close the account.

    Alternatively, your father may open a zero or low maint. charge demat account in his own name & get these bonds transferred to there & rest you know already.

    Thanks

    Ashal

  2. bharat shah says:

    sorry. its IDFC bond , you should contact IDFC for physical conversion. and if there is some condition/time limit to hold (as for any tax benefit availed), you can’t redeem unless some eventualities.

  3. bharat shah says:

    if they are listed on any stock exchange, you can sell them through your trading account. otherwise you can sell/GIFT them to any of you family members , or even any acquaintance/outsider (who is interested to buy ,and having demate account ) through off market. or you can inquire if they could be converted in physical mode by requesting the company IDBI.

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