Regarding Demat account maintenance charges

#1
Hi Friends,

I have opened account with a broker few years back. Due to some reasons i am not trading for more than a year. I have Demat account with them
but never bought or hold any scrip in cash segment. Only traded in index futures that too years back. My account became inactive so I can't literally trade unless I activate the account. Since my account is inactive I have not concentrated about their emails with attachments. Recently I opened the attachment and came to know that I need to pay them 1000 odd Rs for them. I spoke with the executive he said its for maintenance charges.

My question is why maintenance fee for a inactive account with no scrip in it.

Friends and Senior Members kindly guide me what should I do.

Thanking You,
The Trader.
 
#2
Hi Friends,

I have opened account with a broker few years back. Due to some reasons i am not trading for more than a year. I have Demat account with them
but never bought or hold any scrip in cash segment. Only traded in index futures that too years back. My account became inactive so I can't literally trade unless I activate the account. Since my account is inactive I have not concentrated about their emails with attachments. Recently I opened the attachment and came to know that I need to pay them 1000 odd Rs for them. I spoke with the executive he said its for maintenance charges.

My question is why maintenance fee for a inactive account with no scrip in it.

Friends and Senior Members kindly guide me what should I do.

Thanking You,
The Trader.
Depository participants have 3 types of charges as under :
1) Annual Maintenance Charges.These are payable till the account is remaining open and not closed.These are irrespective of whether there is any scrip in the demat account or not.
2) Scrip Based Charges : These are the charges they levy on the number of scrips in the account.
3) Transaction charges : These are based on the transaction in the demat account.

In your case AMC charges will be applicable and item no 2 and 3 are not applicable.

Smart_trade
 

rangarajan

Well-Known Member
#3
Depository participants have 3 types of charges as under :
1) Annual Maintenance Charges.These are payable till the account is remaining open and not closed.These are irrespective of whether there is any scrip in the demat account or not.
2) Scrip Based Charges : These are the charges they levy on the number of scrips in the account.
3) Transaction charges : These are based on the transaction in the demat account.

In your case AMC charges will be applicable and item no 2 and 3 are not applicable.

Smart_trade
I stopped trading for four years & recently opened an a/c with Karvy with Free Demat a/c for the first yr.
As i do only day trade, i have asked them to close the dmat a/c to avoid Maint charges. However they insist that unless i have an alternate demat a/c , they will not be able to close the one with them . The alternate a/c if any should be provided to them for mapping with my trading a/c. Otherwise, they would not entertain trading a/c also.
Pl clarify whether karvy is correct. Is it mandatory to have Demat a/c if one wants to do only daytrade.
 

TraderRavi

low risk profile
#4
I stopped trading for four years & recently opened an a/c with Karvy with Free Demat a/c for the first yr.
As i do only day trade, i have asked them to close the dmat a/c to avoid Maint charges. However they insist that unless i have an alternate demat a/c , they will not be able to close the one with them . The alternate a/c if any should be provided to them for mapping with my trading a/c. Otherwise, they would not entertain trading a/c also.
Pl clarify whether karvy is correct. Is it mandatory to have Demat a/c if one wants to do only daytrade.
yes it is. mine new trading account was also not opened until I submitted CMR from another demat account for mapping.
 

bpr

Well-Known Member
#5
Hi Friends,

I have opened account with a broker few years back. Due to some reasons i am not trading for more than a year. I have Demat account with them
but never bought or hold any scrip in cash segment. Only traded in index futures that too years back. My account became inactive so I can't literally trade unless I activate the account. Since my account is inactive I have not concentrated about their emails with attachments. Recently I opened the attachment and came to know that I need to pay them 1000 odd Rs for them. I spoke with the executive he said its for maintenance charges.

My question is why maintenance fee for a inactive account with no scrip in it.

Friends and Senior Members kindly guide me what should I do.

Thanking You,
The Trader.
actually Demat account is a separate account from trading account.
Your trading account status active/inactive does not matter, you will continue to incur demat account AMC charges until they are closed.
hope it clarifies.
 

prst

Well-Known Member
#6
I have an account with way2wealth, opened 8 years ago. I never used it though. I mailed them asking to close the account but they didn't respond. Even after several emails they didn't respond. I could not visit their office since I have relocated.
Now if I visit their office for closure, will they charge me AMC for last 8 years?
 

sabkaview

PHYSICAL SHARES consultation
#8
if the valuation of securities in your demat account is up to rs 50,000 there is no AMC charges .
if the valuation of securities in your demat is 50,001 to ts 2,00,000 a very nominal AMC say rs 100 per year .
if the above is as per your holdings in demat and if you are an INDIVIDUAL you must INSIST ON BDSA (basis service demat account ).
 

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