Annual Maintenance Charge (AMC) is a fee levied by the Depository Participant (DP) to cover the costs associated with maintaining your account. These costs include:
- Record keeping: Maintaining electronic records of your securities holdings and transactions.
- Account statements: Providing you with periodic statements reflecting your Demat account activity.
- Infrastructure: Upkeep of the technology and systems used for Demat operations.
- Administrative costs: Handling paperwork, regulatory compliance, and other administrative tasks.
The amount of the AMC can vary depending on the DP and the type of account you have. In India, it typically ranges from INR 0 to INR 900 per year. Some DPs may offer a discounted AMC for the first year or for accounts with a higher value of holdings. The AMC can be charged annually, quarterly, or even monthly.
