• Products
    Investment Suite
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Non Convertible Debentures
    Sovereign Gold Bond
    Exclusive
    NRI Account
    Corporate/HUF Trading Account
    Private Client Group
    Features
    SipIt
    MTF
    Investment Suite
    Exclusive
    Features
    Stocks
    Mutual Funds
    Future and Options
    IPO
    Exchange Traded Funds
    Commodity
    Stockcase (Stock Baskets)
    Non Convertible Debentures
    Sovereign Gold Bond
    NRI Account
    Corporate/HUF Trading Account
    Private Client Group
    SipIt
    MTF
  • Platform
    Trading Platforms
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Trade From Charts
    Features and Tools
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Equity Screeners
    Payoff Analyzer
    Calculators
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    SWP Calculator
    CAGR Calculator
    Simple Interest Calculator
    ELSS Calculator
    Step up SIP Calculator
    All Calculators
    Trading Platforms
    Features and Tools
    Calculators
    Kotak Neo App & Web
    Nest Trading Terminal
    NEO Trade APIs
    Trade From Charts
    MTF
    Securities Accepted as Collateral
    Margin Requirements
    Equity Screeners
    Payoff Analyzer
    SIP Calculator
    Lumpsum Calculator
    Brokerage Calculator
    Margin Calculator
    MTF Calculator
    SWP Calculator
    CAGR Calculator
    Simple Interest Calculator
    ELSS Calculator
    Step up SIP Calculator
  • Pricing
  • Research
    Research Calls
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Stock Research Recommendations
    MTF Stock Recommendations
    Research Reports
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
    Research Calls
    Research Reports
    Long Term calls
    Short Term calls
    Intraday calls
    Derivatives calls
    Pick of the week
    Top Monthly Picks
    Stock Research Recommendations
    MTF Stock Recommendations
    Fundamental Research Report
    Technical Research Report
    Derivative Research Report
  • Market
    Market Movers
    Share Market Today
    Top Gainers
    Top Losers
    Stocks
    Large Cap
    Mid Cap
    Small Cap
    Indices
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    All Indices
    Mutual Funds
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    All AMC's
    IPO
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Tata Capital IPO
    Amanta Healthcare IPO
    Quarterly Results
    Jindal Steel's Q1 FY 2025-26 Quarterly Results
    SRI LOTUS DEVLPRS N RTY L's Q1 FY 2025-26 Quarterly Results
    Aeroflex Neu's Q1 FY 2025-26 Quarterly Results
    PVP Ventures' Q1 FY 2025-26 Quarterly Results
    Market Movers
    Stocks
    Indices
    Mutual Funds
    IPO
    Quarterly Results
    Share Market Today
    Top Gainers
    Top Losers
    52 Week High
    52 Week Low
    Volume Shockers
    Large Cap
    Mid Cap
    Small Cap
    State Bank of India
    Reliance Industries Ltd
    HDFC Bank Ltd
    Infosys Ltd
    Tata Consultancy Services Ltd
    Hindustan Unilever Ltd
    ITC Ltd
    IRCTC
    NSE
    Nifty 50
    Bank Nifty
    FinNifty
    Nifty Midcap India
    VIX
    BSE
    Sensex
    BSE Bankex
    BSE Small Cap
    BSE Mid Cap
    BSE 100
    Indian Indices
    Global Indices
    Gift Nifty
    S&P
    Nikkei Index
    Hong Kong Index
    KOSPI Index
    Global Indices
    AMC's
    SBI Mutual Funds
    HDFC Mutual Funds
    Axis Mutual Funds
    ICICI Prudential Mutual Funds
    Nippon India Mutual Funds
    Schemes
    Parag Parikh Flexi Cap
    SBI Small Cap Fund
    SBI Contra Fund
    Nippon Small Cap Fund
    ICICI Pru Technology Fund
    Upcoming IPO
    Current IPO
    Closed IPO
    Recently Listed IPO
    Tata Capital IPO
    Amanta Healthcare IPO
    Sugs Lloyd Ltd
    Snehaa Organics Ltd
    Abril Paper Tech Ltd
    Rachit Prints Ltd
    Amanta Healthcare Ltd
    Optivalue Tek Consulting Ltd
    Goel Construction Company Ltd
    boAt IPO
    Jindal Steel's Q1 FY 2025-26 Quarterly Results
    SRI LOTUS DEVLPRS N RTY L's Q1 FY 2025-26 Quarterly Results
    Aeroflex Neu's Q1 FY 2025-26 Quarterly Results
    PVP Ventures' Q1 FY 2025-26 Quarterly Results
    NDR INVIT Trust's Q1 FY 2025-26 Quarterly Results
    Jaiprakash Associates' Q1 FY 2025-26 Quarterly Results
    Alps Industries' Q1 FY 2025-26 Quarterly Results
    Brightcom Group's Q1 FY 2025-26 Quarterly Results
    Visa Steel's Q1 FY 2025-26 Quarterly Results
    Coffee Day Enterprises' Q1 FY 2025-26 Quarterly Results
    Supreme Holdings & Hospitality's Q1 FY 2025-26 Quarterly Results
    Kavveri Defence & Wireless Technologies' Q1 FY 2025-26 Quarterly Results
  • Learn
    Stockshaala
    Basics of Stock Market
    Introduction to Fundamental Analysis
    Introduction to Technical Analysis
    Derivatives, Risk management & Option Trading Strategies
    Personal Finance
    Resource
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Investing Guide
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Events
    Budget 2025
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2025
    Stockshaala
    Resource
    Investing Guide
    Events
    Basics of Stock Market
    Introduction to Fundamental Analysis
    Introduction to Technical Analysis
    Derivatives, Risk management & Option Trading Strategies
    Personal Finance
    Market Ready
    Kotak Insights
    Infographic
    Podcast
    Webinars
    Youtube Channel
    Demat Account
    Trading Account
    Share Market
    Intraday Trading
    IPO
    Mutual Funds
    Budget 2025
    Muhurat Trading
    Share Market Holiday
    Market Outlook 2025
  • Partner
    Business Associates
    Kotak Connect Plus
    Startup connect
    Business Associates
    Kotak Connect Plus
    Startup connect
  • Support
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement
    FAQs
    Circulars
    Bulletins
    Contact Us
    Forms Download
    Get your Statement
  • News

What are the Account Maintenance Charges for a Demat Account?

  •  4m
  •  8,767
  • Updated 29 Jan 2025

The stockbroking firm or the depository participant (DP) charges an Account Maintenance Charge (AMC) as a service fee for providing demat account services to traders and investors. Traders and investors interested in the financial stock market should open a Demat account alongside their trading account. This account holds their shares or securities electronically, providing convenience and security.

AMC stands for account maintenance charges concerning Demat accounts. These charges encompass the cost of maintaining a Demat account throughout the year. Account maintenance charges can vary from Rs 300 to 900, depending on the specific terms and conditions of the account provider. These charges encompass a spectrum of expenses essential for properly functioning and managing Demat accounts throughout the year.

Brokers levy account maintenance charges for several reasons, primarily to cover the costs of maintaining and servicing Demat accounts. These charges contribute to the ongoing operational and administrative aspects required to ensure a smooth and secure trading experience for investors. Here are some of the key reasons why brokers levy AMC charges:

  1. Maintenance of Technological Infrastructure: Brokers must maintain sophisticated technological systems and platforms to manage and track investors' Demat accounts. This includes investing in software, hardware, servers, and security measures to ensure the safekeeping of electronic securities.

  2. Security Measures: Maintaining a high level of security is paramount in online trading. Brokers implement stringent security protocols and invest in cybersecurity measures to protect investors' sensitive financial information and assets from potential breaches or unauthorized access.

  3. Customer Support: Brokers provide customer support services to assist investors with queries, concerns, and technical assistance. This requires hiring and training support staff, maintaining communication channels, and offering prompt assistance to ensure a positive user experience.

  4. Administrative Tasks: Managing demat accounts involves various administrative tasks, such as updating account information, processing corporate actions like dividends and bonuses, handling account transfers, and more. These tasks require personnel and resources to ensure accuracy and efficiency.

  5. Operational Costs: Running a brokerage business involves various operational expenses, including rent, salaries for staff, utilities, and other overhead costs. AMC charges help cover these day-to-day operating expenses.

To Sum Up

AMC charges play a vital role in supporting a brokerage firm's infrastructure, security, customer service, compliance, and overall operational aspects. They enable brokers to provide a seamless and secure trading environment for investors while covering the costs associated with managing and servicing demat accounts.

Read More : Budget 2024 updates

FAQs on AMC Charges

Initially, your broker will send you multiple reminders to pay them. If you still don’t pay, your account will be declared dormant.

Yes, paying AMC charges is mandatory, and even if there are no transactions in your account, you need to pay them.

Did you enjoy this article?

0 people liked this article.

What could we have done to make this article better?

Read Full Article >
Get Your Demat in Minutes!
+91 -

Get Your Demat in Minutes!
+91 -