Demat account annual maintenance charges
The annual maintenance charge (AMC) is the largest recurring cost on a buy-and-hold demat account in India. Most discount brokers charge ₹0–₹300 a year; full-service brokers go higher. There is also a SEBI-mandated reduced-AMC option called BSDA that most investors do not know exists.
What AMC actually pays for
AMC is a fee the broker charges to keep your demat account open and maintained on the depository (CDSL or NSDL) infrastructure for another year. It covers the depository participant fees the broker pays to CDSL / NSDL, plus the broker's own cost of running the account — statements, customer support, corporate-action processing, regulatory reporting.
AMC is independent of whether you trade or not. A dormant account still incurs AMC each year unless it is formally closed.
Typical AMC range in India
AMC varies by broker and segment. The current landscape:
- ₹0 / year — Groww, Dhan and a few newer discount brokers on the basic plan.
- ₹300 / year — Zerodha, Upstox and the standard discount-broker tier.
- ₹500–₹999 / year — most full-service brokers (ICICI Direct, HDFC Securities, Kotak Securities).
- ₹0 for the first year, then standard rate — common promotional offer across brokers.
- Plus GST at 18 % on top of the AMC base rate.
BSDA — the reduced-AMC option SEBI mandates
BSDA stands for Basic Services Demat Account. SEBI requires every depository participant to offer it. It has lower AMC than a regular demat — designed for small investors who would otherwise be put off by the standard AMC.
- Eligibility — holdings value below ₹10 lakh, and only one demat across CDSL + NSDL in your name.
- AMC — ₹0 if your holdings are below ₹4 lakh; ₹100 + GST if holdings are between ₹4 lakh and ₹10 lakh. Compared to standard AMC of ₹300+, the saving compounds over years.
- Every other feature works as a regular demat — same login, same statements, same depository protections.
- You can request BSDA conversion via your broker; it is your right under SEBI rules.
AMC on dormant or inactive accounts
A demat account does not auto-close if you stop using it. AMC keeps accruing each year. After extended inactivity (typically 12+ months without trades or transactions), the broker may flag the account as dormant — you have to complete a re-KYC to revive it. The holdings remain safe throughout; the account just becomes harder to use.
If you genuinely do not need the account, the only way to stop AMC is to close it formally. Closure involves transferring any holdings out (to another demat or selling them) and submitting a closure request.
How to minimise AMC
Three practical approaches:
- Pick a ₹0 AMC broker on the basic tier (Groww, Dhan currently).
- Use a single demat instead of multiple — multiple demats stack multiple AMCs.
- If you have a small portfolio with one broker, ask for BSDA conversion. ₹0 AMC up to ₹4L holdings.
Frequently asked
What people ask about demat account annual maintenance charges.
No. AMC is an annual fee for maintaining the demat account regardless of trades. Brokerage is a per-trade fee the broker charges when you place an order. Both, plus statutory charges, contribute to your total cost.
Yes, by picking a broker that charges ₹0 AMC on the basic plan (currently Groww and Dhan). Even on a paid-AMC broker, you can convert to BSDA if your holdings are below ₹4 lakh — that is ₹0 AMC by SEBI rule.
Annually, on the anniversary of your account opening or on a fixed date each year (varies by broker). It is auto-debited from your trading account ledger; some brokers email a heads-up a few days before.
Generally no, once it has been charged for the year. If you close the account before the renewal, you do not pay the next year's AMC.
Yes. AMC continues each year as long as the account is open, dormant or active. The only way to stop AMC is to formally close the account.