Annual Maintenance Charge (AMC) is charge for keeping Demat Account active (similar to your Bank Locker, whether you use it or not all the time) and collected by Depository Participant, wherever you have Demat Account. India has two Depository CDSL and NSDL.
There are two type of Depository Participant:
- Depository Participant who are Stock Broker also
- Depository Participant who are Banks, Custodian etc. buy not doing Stock Broking.
All DP who are not Stock Broker are charging AMC from each client ranging from Rs 300 to Rs 1500 per annum.
Majority of Stock Broker also charges AMC ranging from Rs 250 to Rs 1500 per annum. It is worth noting that neither CDSL nor NSDL charges AMC for individual Demat Account to DP. This has major source of revenue for many DP.
ProStocks is Stocks Broker of NSE and BSE as well as Depository Participant of CDSL. Not only Your account opening with ProStocks is Free but also your Trading and Demat Account are life time AMC Free. ProStocks collect Rs 1000 refundable deposit toward Demat Account and refund as and when client closes their Demat Account.
