The 4 Types of Charges on Every Demat Account
When investing in Indian equities, understanding the total cost of ownership is essential. Brokerage advertisements frequently highlight "Zero Brokerage," but investors should be aware of several other standard charges:
- Account Opening Fee: A one-time onboarding fee charged by the broker. Most modern brokers charge ₹0, while some charge ₹200–₹300.
- Annual Maintenance Charge (AMC): The recurring cost of maintaining your Demat account with the depository participant (DP). Ranging from ₹0 (e.g., Groww) to ₹300–₹500 per year.
- Depository Participant (DP) Charges: A flat fee charged each time you sell equity shares from your holding. It is split between the depository (CDSL/NSDL) and the DP broker (typically ₹13 to ₹20 + GST per scrip per day).
- Statutory Government Levies: STT (Securities Transaction Tax), Exchange Transaction Charges, SEBI Turnover Fees, Stamp Duty, and 18% GST.
What is the Basic Services Demat Account (BSDA)?
Under SEBI circular guidelines, retail investors with low portfolio values are legally entitled to a Basic Services Demat Account (BSDA) with zero AMC:
- Holding value up to ₹4,00,000: ₹0 Annual Maintenance Charge (AMC).
- Holding value between ₹4,00,001 and ₹10,00,000: Maximum AMC capped at ₹100 + GST annually.
- Holding value above ₹10,00,000: Standard commercial AMC applies.
Note: To qualify for BSDA, you must be the sole or primary holder, and you must not hold any other active Demat account across all depositories.
How DP Charges Work in Practice
Unlike brokerage (which is charged on both buying and selling), DP charges are applied ONLY on sell transactions of delivery shares:
For example, if you sell 10 shares of Tata Motors and 5 shares of Infosys on Monday through Zerodha, you are charged ₹13.50 + 18% GST = ₹15.93 per stock, totaling ₹31.86 for the day, regardless of whether your trade volume was ₹5,000 or ₹5,00,000.