Glossary
What is AMC (Annual Maintenance Charge)? Meaning, Example & Why It Matters
A yearly fee your depository participant charges for maintaining your demat account.
The annual maintenance charge, or AMC, is what your depository participant charges to keep your demat account open and serviced. It is usually billed yearly, quarterly, or sometimes monthly, and applies whether or not you trade. Some brokers offer free AMC for the first year or for certain account types, while others charge it from day one.
Why AMC matters to you
AMC is easy to overlook because it is small and recurring, but it adds up over years and across multiple accounts. If you have opened demat accounts with several brokers and only use one, you could be paying AMC on all of them. For a small portfolio, a yearly fee can be a noticeable share of your returns.
Investors with smaller holdings may be eligible for a Basic Services Demat Account (BSDA), which has reduced or no AMC up to a holding value set by SEBI. Rules and thresholds change, so check the latest SEBI circular or ask your DP whether you qualify.
Practical tip: list every demat account you hold, check the AMC on each, and close the ones you do not need. Before closing, transfer or sell any holdings, and make sure there are no pending dues, otherwise the closure request may be held up.
Example: Illustrative only: if you hold three demat accounts and each charges a yearly AMC of a few hundred rupees, you may be paying over ₹1,000 a year just to keep accounts open, even if you only use one.
See it in rupees: every charge and tax on a real trade, at every broker. Open the brokerage calculator
Related terms
- GlossaryDemat Account
An electronic account that holds your shares, ETFs, bonds and other securities in dematerialised form.
- GlossaryBSDA (Basic Services Demat Account)
A low-cost demat account type for small investors, with reduced charges below a SEBI-defined holding value.
- GlossaryDP Charges
Fees charged by the depository and your depository participant when securities are debited from your demat account.
Frequently asked questions
Is AMC charged if I do not trade?
Yes, AMC is usually charged as long as the demat account is open, regardless of trading activity.
Is GST charged on AMC?
GST generally applies to broker and DP service fees, including AMC. Check your bill for the exact breakdown.
How do I avoid paying AMC?
You can check whether you qualify for a BSDA, look for brokers that offer lower AMC, or close unused demat accounts.