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What is the AMC for a Demat account each year? February 23 2021Annual Maintenance charges, AMC, Demat account

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What is AMC?

Annual Maintenance Charges or AMC is charged in order to maintain your Demat account. The amount of AMC that you have to pay depends on the Stock broker you are with. It ranges from Rs150, most charge Rs 300 and some even charge as much as RS 800/900 going upwards from the second year, depending upon the type of demat account you choose- individual or joint accounts, NRI demat accounts, demat and trading accounts or 3-in-1 accounts. There are brokers who allow lifetime free AMC to the customers without any terms and conditions.  

Often, as compared to discount brokers, full-service brokers charge a higher amount of AMC. The price for your Demat AMC does not depend on whether you hold shares in your Demat account or not. This fee has to be paid for the maintenance of your accounts, regardless of whether you are an active investor or not, or whether you do positional trading or intraday trading. Unless you are with some broker that charges Zero AMC.

Brokers often waive off   AMC for the first year and charge AMC from the 2nd year onwards. Some charge zero AMC services to the account holder who has no shares in the account till the purchase of first share.

What happens if you don't pay AMC fees?

you may face situations mentioned below.

1 - Until you have made the deposit to clear the remaining balance, the account will be locked and you will not be able to access it.

2 - Every year, the demat account will continue to rise until you are able to finalize the payment to clear the outstanding balance.

You should pay off your AMC as soon as possible. If you no longer use the Demat account, it is advisable to ask for closure.

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Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201
INDIRA COMMODITIES PVT. LTD. CIN : U65921MH1995PTC089399

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Manoj Bhandari. Email: compliance@indiratrade.com. Call : 0731-4797275

Investors Grievance Email : complaint@indiratrade.com