All about Demat account maintenance charges.

Before the introduction of online stock trading platforms, buying and selling shares was a cumbersome process. Investors had to maintain physical share certificates for all the stocks in their portfolio. It was common for investors to lose their share certificates due to physical damage or theft. However, dematerialised or demat accounts changed all that. They allowed investors to convert and store all their physical share certificates into electronic form, thereby eliminating the risk of damage and theft. Nowadays, all stockbroking firms allow investors to open demat accounts for storing their shares. For this service, they charge a nominal annual maintenance charge or AMC.

What are account maintenance charges (AMC) in Demat Accounts?

Demat Account Maintenance Charges (AMC) are fees levied by depository participants (DPs) for maintaining your Demat account. These charges are applicable whether or not there is any activity in your account. AMC covers the costs incurred by the DP for providing various services related to your Demat account, such as safekeeping of securities, transaction processing, account administration, and providing regular statements of account, among other aspects. Demat AMC charges can vary based on several factors, including the type of account and the policies of the DP. They are typically charged on an annual basis, but some DPs may offer monthly or quarterly payment options. The AMC structure can be a flat fee which is a fixed annual charge, regardless of the number or value of securities held, or a variable fee based on the value of holdings or the number of transactions.

AMC is an important consideration when managing your Demat account. Understanding Demat AMC charges helps you make informed decisions and manage your investment costs effectively. Always review all charge related details provided by your broker and compare with other service providers to find the most cost-effective option for your needs.

There are mainly four types of charges levied by stockbroking firms on demat account holders:

• Account opening charges:

  To open a demat account, it is necessary to avail the services of depository participants (DPs) such as brokers. Most brokers levy a one-time charge for opening an account with a depository. This is a nominal fee for providing investors the service of operating a demat account. At m.Stock, investors can open a free demat account and enjoy unlimited brokerage free trades on equity delivery, mutual funds and IPOs.

• Annual maintenance charges:

  Along with the one-time account opening charge, brokers also charge fees for demat accounts. This charge may be levied on a quarterly or annual basis. Note that this fee is mandatory and cannot be waived off. It has to be paid irrespective of whether there is any transaction in the demat account. With an m.Stock account, the Annual Maintenance Charges is Zero.

• Transaction charges:

  Depository participants also charge investors for the transactions in their demat account. This may be levied each time shares are debited from or credited to the demat account. Some DPs charge a percentage of the transaction amount, while others charge a flat fee for every transaction.

• Custodian/safety charges:

  Depository participants charge traders a minimal fee for the safe custody of investors’ securities. These charges depend on the number of securities held in the demat account.

Read Also: Demat Account Charges

m.Stock AMC Charges for Demat Account:

m.Stock by Mirae Asset is not only a globally recognised brand, it also offers one of the most cost-efficient demat accounts in India.

Below are the key demat and operating charges levied by m.Stock:

While most other DPs charge an additional amount for some other services, m.Stock offers for free the following:

• Demat per certificate
• Remat per certificate
• Physical CMR Request
• Account Modification 
• Account Reactivation
• Account Closure 

Note: DP charges are typically applied only on the sell (debit) side for delivery equity trades. Pledge charges and operating charges differ if you use features such as pay-later (MTF), offline trading or request physical documents. You can check m.Stock’s detailed pricing here. 

Full-Service vs Discount Broker

Before choosing a broker consider the full-service versus discount model. Full-service brokers bundle research, advisory, branch support, dedicated RM access, IPO services and offline assistance. That breadth of service is reflected in higher AMCs and fees. Discount brokers focus on low trading costs, simple online interfaces and low or zero AMCs for basic plans making them ideal for beginners and cost-conscious traders.

How the Difference Affects AMC and Value?

• Full-service broker AMCs tend to be higher because they fund advisory teams, physical statements and in-person support. They may also include bundled products that justify the charge.
• Discount brokers typically pass on operational savings to customers. Many offer zero or very low AMC plans, collect fees only for premium add-ons and apply low DP charges per debit.
• For active traders who only need execution, a discount broker usually offers lower total cost of ownership. For investors who value research and relationship management, full-service may be worth the AMC.

Quick BSDA vs Non-BSDA Snapshot

Always compare the tariff sheets and factor in the frequency of your transactions. 

The AMC for a Basic Services Demat Account (BSDA)

A Basic Services Demat Account (BSDA) is a low-cost demat option designed for small investors with relatively low holding values. BSDA limits and charges are set by depositories and adopted by brokers. The aim is low annual maintenance charge (AMC) for small portfolios while still providing the standard demat services. Some platforms, like m.Stock, charge zero AMC, making it a highly cost-efficient demat option. 

BSDA charge slabs (example reference — updated depository/broker rules):

These slabs follow the updated BSDA framework adopted by some online brokers. If your holdings stay under the threshold, you typically pay no AMC; once you cross the slab, a modest fee is levied per quarter or year. Always check your broker’s exact implementation, because the threshold and charge presentation may vary slightly between DPs. Naturally, lower maintenance charges lead to higher savings in the long run.

The AMC for Non-Basic Services Demat Accounts (Non-BSDA)

Non-BSDA accounts are the standard demat accounts for active and larger investors. They have no holding-cap protection and therefore attract regular AMCs and additional service charges. Non-BSDA AMCs vary by broker and depend on the level of services offered, frequency of statements, offline support and any bundled products.

Typical features of Non-BSDA AMCs

• Charged annually, often billed quarterly in arrears.
• Typical ranges in the market vary from roughly ₹ 500 to ₹ 1,500 per annum at many brokers, but can be higher if extra services are included.
• Non-BSDA holders can receive printed statements, call-and-trade support and other add-ons which increase the billed AMC.

Always check the broker’s tariff sheet for exact AMCs and any conditional waivers.

Factors that influence AMC and Demat Charges

Several factors shape how much you pay each year for maintaining a demat account:

1. Holding value and account type. BSDA rules protect small portfolios; once you move into non-BSDA areas AMCs normally apply. Brokers implement the depository slabs differently, so holdings matter.
2. Broker model and service bundle. Full-service brokers charge more for advisory and offline support; discount brokers aim for low AMC, higher à-la-carte convenience.
3. Frequency and type of transactions. Frequent debit transactions attract DP charges repeatedly; frequent remat or DIS requests will add extra line items.
4. Add-on features used. Physical statements, call-and-trade, offline settlements and pledge/MTF usage can increase billed charges.
5. Depository and regulatory costs. Some charges reflect NSDL/CDSL depository levies that brokers pass through to customers. These are outside a broker’s control and show up in the tariff.

Because these inputs change, compare current tariff rates and the broker’s pricing page before deciding. Industry search pages summarise typical patterns, but the broker’s tariff is decisive.

Conclusion

Demat Account Maintenance Charges are a key aspect to consider before opening and while managing your Demat account. Best practices in this regard include reviewing the DP’s schedule of charges to understand the AMC and other fees before opening a Demat account. Thereafter, regularly check your account statements to ensure AMC is being charged correctly. Furthermore, consider the AMC when choosing a DP, as lower charges can save you money over time.

Choosing a DP like m.Stock by Mirae Asset can help manage and potentially reduce the costs associated with maintaining your Demat account as along with Zero brokerage across equity delivery, mutual funds and IPOs, it also has the added advantage of Zero AMC. Elevate your trading game and save more with each trade, with m.Stock. After all, saving is earning too.