Demat Account Charges in 2026: Every Hidden Fee Broken Down
TL;DR
- Demat accounts in India are operated by depository participants (DPs) registered with NSDL or CDSL, and every DP charges a different fee schedule.
- Common charges include account opening fee, annual maintenance charge (AMC), debit transaction (DP) charges, pledge and unpledge fees, dematerialisation fees, and SEBI turnover fees.
- Basic Services Demat Account (BSDA) holders with holdings up to Rs. 4 lakhs get free or nominal AMC under the SEBI June 2024 circular.
- DP charges per sell transaction typically range from Rs. 10 to Rs. 25 plus 18 percent GST, irrespective of trade size.
- Many investors do not realise they are paying twice when they pledge shares for margin, switch DPs, or hold across two depositories.
What this means in plain terms
A demat account holds your shares and bonds in electronic form. The depository (NSDL or CDSL) actually stores the records, but you interact with a depository participant such as Zerodha, Groww, Upstox, ICICI Direct, or HDFC Securities. Each DP sets its own fee schedule within SEBI's rules, which is why your friend on one broker can pay zero AMC while you pay Rs. 750 on another.
The most invisible costs are not the headline brokerage but the small DP charges that get debited each time you sell. They are flat per scrip per day, so selling Rs. 5,000 worth of one share costs the same as selling Rs. 5 lakhs of it. For small investors this can quietly become the largest cost of investing.
Types of demat account charges
Account opening fee
Most discount brokers waive the opening fee for online accounts. Traditional bank-linked DPs may still charge Rs. 200 to Rs. 750. Always check whether the fee is one-time or refundable against future brokerage.
Annual maintenance charge (AMC)
AMC ranges from Rs. 0 to Rs. 750 plus GST per year. Under the SEBI BSDA framework, investors with holdings below Rs. 4 lakhs across all demat accounts pay zero AMC if holdings stay below Rs. 50,000, and Rs. 100 if between Rs. 50,000 and Rs. 4 lakhs. Above Rs. 4 lakhs, normal AMC applies.
Debit transaction or DP charges
Levied every time you sell shares from your demat account. The flat charge varies from Rs. 10 to Rs. 25 per scrip per day, plus 18 percent GST. Buy transactions usually attract no DP charge.
Pledge and unpledge fees
If you pledge shares to fund a margin trading facility or a loan against securities, the DP charges Rs. 25 to Rs. 60 per pledge request and a similar amount to unpledge. Closing positions early means paying twice within the same week.
Dematerialisation and rematerialisation
Converting physical certificates to electronic form costs Rs. 50 to Rs. 150 per certificate plus courier charges. Going back to physical is more expensive and rarely needed today.
SEBI and statutory charges
SEBI turnover fee
A statutory fee of Rs. 10 per crore of turnover is charged on both buy and sell sides of every trade. For retail trades this is fractions of a rupee but adds up for active traders.
Stamp duty
Stamp duty was unified across states from July 2020. The rates are 0.015 percent on equity delivery, 0.003 percent on intraday, and 0.0001 percent on futures, charged only on the buy side.
Securities Transaction Tax (STT)
STT is 0.1 percent on both buy and sell sides of equity delivery, 0.025 percent on equity intraday sell, and 0.0625 percent on options sell premium. It is collected by the exchange and is non-refundable.
GST
GST at 18 percent applies on brokerage, DP charges, AMC, SEBI fees, and exchange transaction charges. It is a meaningful chunk because it sits on top of every other fee.
How fees stack up for different investor types
The small SIP investor
If you buy Rs. 5,000 of one stock every month and never sell, your only cost is brokerage (often zero on discount brokers), STT on buy (Rs. 5), stamp duty (less than a rupee), and AMC if your holdings cross BSDA limits.
The active trader
If you place 20 sell transactions a month across different scrips, DP charges alone come to roughly Rs. 20 times 20 times 1.18 GST equals Rs. 472 a month, or Rs. 5,664 a year. Add STT, brokerage, and stamp duty, and your fixed costs become real.
The pledge-and-trade user
Pledging shares for margin trading adds Rs. 25 to Rs. 60 per scrip pledged and again on unpledge. Doing this weekly costs Rs. 2,000 to Rs. 5,000 a year just in pledge fees.
A real example
Aditya, 29, Rs. 14L CTC, Pune, opens a demat account in April 2025 with a discount broker. He invests Rs. 10,000 a month in five different stocks through the year and sells twice in March 2026 to book some gains.
Here is what he pays for the financial year:
- Account opening fee: Rs. 0 (waived).
- AMC: Rs. 0 for first year as a promotional offer.
- STT on buy: 0.1 percent of Rs. 1,20,000 = Rs. 120.
- Stamp duty: 0.015 percent of Rs. 1,20,000 = Rs. 18.
- DP charges on 2 sell trades, 1 scrip each: Rs. 20 x 2 x 1.18 GST = Rs. 47.20.
- STT on sell: 0.1 percent of, say, Rs. 25,000 = Rs. 25.
- SEBI turnover fee and exchange charges: roughly Rs. 5 total.
Total Aditya pays in the year: about Rs. 215. Reasonable. But if he had switched to active trading with 30 sell trades, DP charges alone would have crossed Rs. 700, and pledging would have added another layer.
What to do this week
- Log in to your DP portal and download your contract notes and ledger for the last 12 months to see exactly what you paid in DP charges, AMC, and pledge fees.
- Check whether your holdings qualify for BSDA under the SEBI June 2024 circular and ask your DP in writing to switch you to BSDA if eligible.
- Compare AMC and DP charges across two or three DPs before opening a new account; the lowest brokerage does not always mean the lowest total cost.
- If you hold the same security across two demat accounts, consolidate to one DP to avoid paying AMC twice.
- Run the 6-step assessment at https://myfinancial.in to see your old-vs-new regime delta, unused deductions, and insurance gap in under 10 minutes.
FAQ
Can I have more than one demat account?
Yes. SEBI allows multiple demat accounts across different DPs, but you pay AMC at each one. Most retail investors find one demat with their primary broker is enough.
Are DP charges the same as brokerage?
No. Brokerage is charged by the broker for executing the trade. DP charges are levied by the depository participant for debiting shares from your demat on sell trades, and they apply even on zero-brokerage discount brokers.
Is BSDA automatic?
No. You must qualify by holding value criteria and you should request your DP to apply BSDA. Many DPs apply it on review but it is safer to ask in writing.
Do mutual funds attract DP charges?
Mutual fund units held in demat form attract DP charges on sell or redemption. Units held in statement-of-account form through the AMC or RTA platforms do not.
What happens if I do not pay AMC?
Unpaid AMC accumulates and the DP may freeze your demat account, blocking further transactions until the dues are cleared with interest or late fees.
Are demat charges tax deductible?
For long-term capital gains computation under Section 48 of the Income-tax Act, expenses wholly and exclusively related to the transfer can be deducted, which includes STT only as per Section 10(38) carve-outs but excludes most demat charges. AMC is not deductible for individual investors.
How do I close a demat account?
Submit a closure form to your DP with supporting documents. Ensure holdings are zero or transferred to another demat first. The DP must close the account within 7 working days as per SEBI rules.
Sources
- https://www.sebi.gov.in/legal/circulars/jun-2024/revised-framework-for-basic-services-demat-account-bsda-_84432.html
- https://www.sebi.gov.in/sebi_data/faqfiles/jan-2023/1674642137582.pdf
- https://nsdl.co.in/services/depository_charges.php
- https://www.cdslindia.com/Investors/SchedFee.aspx
- https://www.nseindia.com/regulations/transaction-charges
This is general information, not personalised advice. For your situation, consult a Certified Financial Planner.
