List of Charges of Demat Account in India

Charlotte Miller

Updated on:

List of Charges of Demat Account in India

Stock Market is attracting many investors and traders, thanks to greater awareness and relative ease of access to the market today. Everyone starting their journey in the market needs some prerequisites. A Dematand Trading Account and the Bank Account are an absolute necessity for trading in the Stock Market. 

What is a Demat Account? Some decades back, when Stock Trading was largely offline, shares were held in physical certificates. This made trading shares a cumbersome activity, and hence, the Stock Market was limited to savvy investors and business people. The problem got solved when the concept of dematerialisation was entered, which converted these physical certificates to digital certificates. These digital records of your company ownership necessitated the need for an account that holds. 

Demat Accounts work like Bank Accounts, except it holds securities like Shares, Bonds, Mutual Funds, Exchange Traded Funds, etc., you than money. Each time you sell or buy these securities, they get debited or credited from the Demat Account. There are just two companies that maintain such accounts in India: National Securities Depository Limited and Central Depository Services Limited. However, you need not approach them to open Demat Accounts. 

These depositories have agents, called depository participants, who do that task. These DPs are usually brokers, banks, and non-banking financial institutions.Now, everything today comes with a price. The same goes for Demats. There are numerous Demat Account charges to be aware of. Like Savings Account have charges like ATM, minimum balance charge, maintenance charge or transaction charges, Demats have associated fees. 

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As an investor, look for accounts that fulfil your needs and have a standard set of charges. Some of the fees are:

Account opening charge

Demat Account opening charges are a one-time affair that DPs levy. Usually, it is in a few hundred rupees. However, some brokers and DPsentirely waive off this charge. 

Annual maintenance charge

This pinches the investors, especially beginners if they remain invested. This is a fixed annual charge that gets levied for maintaining your account. It is imposed even if you do not make any transaction in your account.  The AMC is usually of a few hundred rupees yearly. Few brokers waive the maintenance fee for the first year. Some also offer to waive the fee entirely to attract more investors to their platform. 

Then, others charge either a refundable or non-refundable one-time fee for such a lifetime AMC free account.  

DP/transaction charges

This you need to be wary of.They get charged by depositories and DPs every time a share gets sold. They are typically betweenRs. 10to 30, plus taxes. DPs levy them at the end of the day or with every ‘sell’ transaction. They do not chargefor buy transactions, i.e., when a share gets credited to your account. 

Other service charges

There could be associated Demat Account charges for specific services that DPs offer. There are flat or variable fees for dematerialisation and rematerialisation of share certificates, settlement of Mutual Funds, redemption Fund units, and postal charges for sending requested documents. 

Keywords:Demat Account charges, Demat Account opening charges

Disclaimer – ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, AppasahebMarathe Marg, Prabhadevi, Mumbai – 400 025, India, Tel No : 022 – 6807 7100. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein above are solely for informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments or any other product. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.


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