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Zero AMC Demat Account (Lifetime Free AMC)

Published on Monday, April 8, 2019 by Chittorgarh.com Team

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Zero AMC Demat Account (Lifetime Free AMC)

A Zero AMC Demat account can help you save some money every year without compromising in any of the services. Lets discuss about Demat Account, Demat Account Charges, No AMC Demat Account and list of stock brokers offering zero AMC Demat Account or AMC Free Demat Account.

What is Demat account?

A demat account is an online account wherein a trader can hold securities like equities, mutual funds, bonds etc., in electronic form. The full form of Demat account is dematerialised account. It works like a bank account. So whenever you buy any shares, it is credited to your Demat Account and whenever you sell any security it is debited from your Demat Account.

Demat accounts are opened and managed by central depositories. The National Securities Depository Ltd (NSDL) and the Central Depository Services India Ltd (CDSL) are central depositories in India. These two organizations can only open and manage demat accounts in India. Stock Brokers like Axis Direct, HDFC Sec and Karvy etc., are Depository Participants (DPs) of any one or both the central depositories. The role of the DP is limited to acting as an intermediary between the customer and the central depository.


Why do I need a Demat Account?

It is required to have a Demat account if you are planning to invest in:

  • The stock market (buy/sell shares of the listed companies),
  • Mutual Funds
  • Corporate Bonds
  • Government Securities etc.

Demat account is mandatory for online stock trading. The shares you buy are credited electronically in your demat account. The shares are debited when you sell them. The electronic transfer of shares makes the transaction faster.


Online Demat Account Benefits

An online demat account offers you many benefits like:

  • Allows you to hold different types of securities like equities, bonds and mutual funds etc., at one place
  • Lowers the risks of theft, damage and losses of holding physical securities.
  • Transfer of shares during buying and selling can happen at a faster rate
  • Helps you track and manage all your securities from anywhere, anytime
  • Electronic securities held in the demat account can be traded in odd lots or even 1 security can be traded. This is not possible with physical securities.
  • Reduced costs in transaction fees, handling charges etc.
  • Benefits like dividends, bonuses etc., are directly credited to the bank account linked with the Demat account.
  • Facilitates applying in IPO via ASBA netbanking and shares are credited into the Demat account

Types of Online Demat Accounts

Demat accounts are of two types:

  1. Normal Demat Account
  2. Basic Services Demat Account(BSDA)

The BSDA is a special demat account design to reduce the maintenance cost for small investors. It is for investors whose value of holding in the demat account is less than ₹50,000 in Equity or ₹1 Lakh in debt funds. Lets compare BSDA and notmal demat account:

BSDA vs Regular Demat Account

Normal Demat Account

BSDA Demat Account

Offer a full range of services Offers basic services for free, for other services account holders have to pay fees
No limit to the value of securities held in the account. You can hold securities up to any value without any increase in AMC and other charges. For ₹0 AMC, the holding limit for BSDA is ₹50,000 in stocks or ₹1 lakhs in debt funds. Broker charge AMC if the holding exceeds these levels.
You can hold multiple demat accounts across DPs. You can hold only one BSDA demat account across DPs.
Suited for frequent and high volume traders. Suited for small investors.
Standard transaction cost is applied. The demat transaction cost is higher than regular demat account.

Demat Account Charges (Fees) Explained

Demat Account Charges

Charges Type

Demat Charges Meaning

Account Opening Charges

Fees paid for opening a Demat account

Dematerialisation

Fees paid for converting physical securities to electronic securities.

Rematerialisation

Fees paid for converting electronic securities to physical securities.

Debit Transaction

Fees charged when you sell shares and your demat account goes debited.

Off-Market Transactions(Sell)

Fees paid when securities are transferred between two parties.

Account Maintenance Charges (AMC)

Annual fees charged by the stock broker for maintaining the account.

Pledge Charges

Fees paid when securities held in the demat account are pledged as a collateral for a loan

Invocation of Pledge

Fees paid when securities pledged as a collateral are invoked or closed

Charges for modification in Address, Email, Mobile and Bank Updation

Fees paid for modifications in account holder's information

Delivery Instruction Slip (DIS) Re-Issuance

Fees paid for Delivery Instruction Slip (DIS) booklet

Consolidated Account Statement (CAS)

Fees paid for getting CAS of your Demat account

Sample Demat Account Charges

Zerodha, a leading stockbroker in India provides Demat Account related services through its DP membership with CDSL. Below is Zerodha Demat Account charge list for reference:

Zerodha Demat Account Charges

ID Transaction Charges
1 Demat Account Opening Charges ₹0
2 Stamp Charges payable upfront (at actuals) ₹50
3 Annual Maintenance Charges (AMC):
  a. Individuals ₹300 Per Year + GST (Payable upfront every year)
  b. Corporates ₹1000 + GST (Payable upfront every year)
4 Transaction Charges per ISIN (Market Trades):
  a. Buy (Receive) ₹0
  b. Sell(Debit) ₹8 + ₹5.50 flat for every debit transaction
5 Inter Depository Transfer (Off-Market Trades):
  a. Buy (Receive) NIL
  b. Sell(Debit) 0.03% or ₹25 whichever is higher
6 Demat (Per certificate) ₹150
7 Remat (Per ISIN) ₹150 (Per certificate) + CDSL Charges
8 Courier charges per Demat/ Remat request ₹100
9 Pledge per ISIN ₹20 + ₹12 per request (CDSL Charges)
10 Unpledge per ISIN ₹20 + ₹12 per request (CDSL Charges)
11 Pledge Invocation per ISIN ₹20
12 Periodic Statement:
  a. By Email Free
  b. Physical ₹50 (Couier Charges)
13 Adhoc / Non Periodic Statement Requests:
  a. By Email ₹10 per request
  b. Physical ₹50 per request upto 10 pages. Every additional page at ₹5 (+Courier charges at actual)
14 Delivery Instructions:
  a. First Delivery Instruction Book Free (10 leaves)
  b. Every Additional Booklet ₹100 (10 leaves)
15 Cheque Bounce/ Per cheque ₹350
16 Failed Transactions ₹50 per ISIN
17 Modification in CML ₹25 per request
18 KRA Upload / Download ₹50

AMC Demat Account

The full form of AMC is the Annual Maintenance Charge. A Demat account AMC is an annual fee charged by a stock broker for maintaining the demat account. The AMC is a fixed expense and is charged whether you have any securities in your demat account or not. For BSDA demat accounts, the AMC is zero for securities holding value up to ₹50,000. From ₹50,001 to ₹200,000 the AMC is ₹100 and above ₹200,000, tariff charged by brokers for regular accounts is applied.

Zero AMC Demat Account

In a No AMC or Zero demat account, the AMC is waived by brokers. There are two types of offers available in the market- the First year no AMC demat account and a lifetime no AMC demat account. To attract investors, stock brokers waive off demat account AMC. Some brokers waive off the first year AMC while some brokers like Prostocks offer a lifetime no amc demat accounts.

Difference between No AMC and Zero AMC Demat accounts?

No, there's no difference. Both no amc demat account and zero demat accounts are interchangeably used to describe demat accounts for which AMC charges are waived.

Brokers Offering Lifetime Free AMC Demat Account

To find stock brokers offering lifetime free amc demat account, you need to check with the broker. Visit their websites and check out their AMC and other demat account charges. And then compare demat account of brokers to find the best online demat account. It's a time taking process. To save your precious time, we have compiled a list of brokers offering no amc or lifetime free amc demat accounts:

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