Demat Account Fee Charges

Charges Involved in Demat Account

The fee to open a Demat Account is varies DP to DP. There are four major charges usually levied on a demat account: Account opening fee, annual maintenance fee, custodian fee and transaction fee.

Demat Account Opening Fee: This fee is totally depends on DP to DP, Some DP's charge this fee but some usually other don't charge any fee to open a Demat Account.

Annual Maintenance Fee: folio maintenance charges or Annual Maintenance Fee is generally levied in advance.

Custodian Fee: The Custodian Fee is charged monthly and depends upon the number of securities (ISIN) held in the account. It usually range between Rs. 0.5 to Rs.1 per ISIN per month.

Transaction Fee: Brokerage Fee or Transaction fee is charge monthly for debiting and crediting shares to and from Demat Account. Some DP charge a flat transaction fee and some other charges this fee on the basis of the value. These charges also differ based on the transaction type (Buy/Sell). Some DP charges only for debiting the account while others charges transaction fee for both. DP's also charges for Rematerialization (Converting electronic holding to physical holdings)and vise-versa. In addition to above mentioned fee service tax is also applicable on opening a Demat Account.

Within 15 days of submitting the form and associated documents the DP will open the account in the system and give an account number, which is also called BO ID (Beneficiary Owner Identification number). You can then start applying for shares or transfer in your shares from other DP's or purchase shares from a broker or even apply for mutual funds, bonds etc.

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