Demat Account Charges
A Demat account is a safe way to hold securities and hence the DPs impose four primary charges on the investor, although different DPs charge different amounts.
Opening charges – Few banks and brokers charge for opening a Demat account but many DPs do it free of cost.
Custodian fee – This monthly charge is for managing the securities and their safety, priced according to the number of securities.
Maintenance charges –Also called folio maintenance services, this is charged for a year at the commencement of the period
Transaction charges – This monthly charge is for debiting/crediting securities in and out of the account. There are DPs who charge for debiting and crediting separately or for each transaction.
Banks and brokers charge for converting paper shares to electronic form and vice versa, i.e. dematerialization and re-materialization. A flat fee per request and a variable fee per certificate are charged. Frequent traders can choose to have a frequent-trader account where they are offered lower rates than others.
If the balance falls down a certain amount prescribed by the DP, the account holder needs to raise it. DPs generally don't charge for an account transfer within branches of a DP. The account holder will also need to pay any charges revised by the DP or for the service taxes.