What happens if I do not pay AMC for a demat account?

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If you do not pay the AMC for you're demat account, following things will happen:

1. You will be bombarded with reminders via Email, SMS and Phone Calls by the broker.
2. After some time, your demat account is declared a dormant account (inactive). This means you can't do any transaction until it's reactivated.
3. To reactivate, you have to pay the reactivation fee (~ Rs 500) and clear all the dues (AMC + interest).
4. To close a dormant demat account; you have to reactivate it first.
5. If you have no holdings and have a dormant account with a broker, they will not allow you to open another account.
6. The brokers (depository participants or DP) hold the dormant account forever. They will keep sending you reminders and a demat account statement.

Note:

• The time to declare an account dormant, reactivation fee, interest rate, etc differs by a broker to broker.
• Open a Lifetime AMC Free Demat Account, if you are not an active investor.