Demat account has been a point of discussion
in the past blogs. Every individual which has fair knowledge about share market
knows that holding a demat account is mandatory in order to trade in the share
market. Any investor in India who intends to own securities such as stocks,
bonds, or mutual funds must first open a demat account. Demat accounts are
electronic records that track the ownership of tradable assets. Demat is the short
form for dematerialized.
Opening a demat account is really an easy
process wherein you just have to provide the necessary details asked and you’re
good to go. Although you need to pay charges to open a demat account.
Until a few years ago, investors had to pay a
handsome amount to open a demat account. Now a days demat account opening
charges are drastically reduced.
The Account Maintenance Charge is a charge
which is levied on the account holder by the service provider in order to
maintain the demat account. The Annual Maintenance Charges (AMC) vary
significantly. Some DPs charge investors a flat fee of Rs 300-500 per year,
while others waive annual maintenance fees for the first year to draw customers
then they start charging from the second year onwards.