Annual maintenance charges are a yearly fee your Depository Participant (broker or bank) charges to keep your demat account active, whether or not you trade.
It covers the DP’s cost of maintaining your account records and services. The amount varies by broker. Some charge a fixed yearly amount, some charge it quarterly, and some waive it entirely under a “free AMC” plan. GST is usually added on top.
Points worth knowing:
- AMC is charged even if your account has no trades, so it keeps getting deducted from a dormant account.
- If your ledger balance is zero, the charge may show as a debit that you’ll need to clear later.
- Small-value accounts may qualify for reduced charges under a Basic Services Demat Account (BSDA), if your broker offers one.
Example: you opened an account years ago, bought a few shares and forgot about it. AMC kept accruing. When you log in again, you find a negative balance in your ledger that must be paid before you can do anything.
If you’re not using an account, either keep a small balance to cover it or close the account properly after moving your shares.
These everyday costs are explained in our Diploma in Stock Market, so you know what you’re paying for.