A demat account in India attracts many charges. AMC charge
expense is one of them. This post explains what is AMC charges for a demat account
and what is approximate AMC charges. While some charges are one-time, some are
regular recurring charges.
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AMC stands for annual maintenance charges for holding a demat account. The charges differ with various
depository participants. However, here we
have tried to give the best estimate of
what your AMC charges should be.
What is AMC
AMC for a demat account is a rate or fixed amount that the broker charge from
the account holder. It is levied on the account on yearly basis. The charges
are collected by the broker to cover the administrative expenses for
maintaining the account.
Also View Here in Quore - https://www.quora.com/What-is-the-AMC-for-a-Demat-account-per-year
Demat Account Maintenance Charges
Depending upon our studies of AMC charged by various
institutions, we have shared here the details.
These charges are important to consider while opening a demat account. If the AMC is high, it will
reduce your profitability. Many brokers
and banks do not charge AMC for the very first year of your account. The
charges start from the second year and that vary from 300 to 500 INR up to 1000
INR.
- Here is an idea of AMC charges for a demat account-
- If the amount of basic service demat account is less than 50,000, the charges are Nil.
- For BSDA (basic service demat account) of Rs. 50,000 to 2 lac, the charges are Rs. 100 per annum
- For BSDA above Rs. 2 lacs, the charges are Rs. 700 per annum.
- However, the private banks like ICICI chargeRs. 500-600 for accounts above 2 lacs.
Hence, make sure that you should not be paying AMC during
the first year. Moreover, make sure that it is not above the market rate i.e.
around 500 for accounts above 2 lacs.
Also Read - How to open Demat Account
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