How is Demat maintenance charge levied?

How is Demat maintenance charge levied?

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A trader’s life has been drastically altered by the introduction of aDemat Account. The entire investing, trading, holding, and monitoring process has been made more convenient, cost-effective, and speedier. You no longer have to be concerned about your shares and other investment paperwork being stolen or destroyed. You don’t have to run helter-skelter to collect your stock trading credentials. Everything is taken care of by simply sending instructions to your Depository Participant (DP) from the comfort of your own home, while you enjoy your life and attend to other vital matters.

A Demat account holder, like other charges, will have to pay an annual maintenance charge (AMC) to the Depository Participant (DP) for the services supplied. These payments, also known as folio maintenance charges, must be paid in advance and normally vary from Rs 300 to 900 each annually. Some DPs may additionally charge quarterly fees, while others may levy a lifetime price of more than Rs. 2000. However, with so many DPs vying for clients, several of them have eliminated AMC payments for the first year and started paying from the second year alone AMC rates for DPs under banks are often varied. Banks that provide three-in-one (demat, trading, and savings) accounts often charge less because the trading account gets linked to the same bank’s savings account. However, if the mapping is with another bank’s savings account, the fee is larger.

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its all upto the site and services you choose

Demat charges are automatically deducted when you link you bank account with your trading and demat account. Once a year, usually somewhere at the beginning of the financial year, some charges are deducted for this purpose only.