Demat account charges explained: AMC, DP charges, brokerage and other costs

When you buy or sell shares, the price of the share is not the only cost. There are demat account charges, brokerage, taxes and small fees on every trade. This article explains demat account charges and trading charges in plain words, shows the 2026 tax rates, and walks through a simple example so you can read your own contract note.

In short: Demat account charges are the fees your depository participant (DP) charges for holding your shares, mainly the annual maintenance charge (AMC) and the DP charge when you sell shares from your demat account. Trading charges are separate: brokerage, securities transaction tax (STT), exchange transaction charges, SEBI turnover fee, stamp duty and GST. Some of these are set by the government or regulators, while brokerage and DP charges vary from broker to broker.

Before we look at the charges, it helps to know the two accounts.

• A demat account holds your shares in electronic form. It is opened with a depository participant, which is linked to a depository such as CDSL or NSDL.

• A trading account is used to place buy and sell orders on the stock exchange.

Demat account charges relate to holding and moving shares. Trading charges relate to buying and selling.

Some brokers charge a one-time fee to open a demat account. Many do not. Check the broker's charge list before you open an account.

The AMC is a yearly fee for keeping your demat account active. It is set by the DP, so it varies. Some charge it yearly, some quarterly, and some waive it for the first year.

SEBI created the BSDA for small investors to keep demat account charges low. As per SEBI's rules:

• You can have a BSDA if you have only one demat account (as the sole or first holder) and your holdings are worth up to Rs 10 lakh.

• If your holdings are worth up to Rs 4 lakh, there is no AMC.

• If they are worth between Rs 4 lakh and Rs 10 lakh, the AMC can be at most Rs 100 a year (plus GST).

If your holdings cross Rs 10 lakh, the account becomes a regular demat account with normal charges.

A DP charge is applied when shares leave your demat account, which usually happens when you sell shares you hold for delivery. It is charged per company (per scrip) per day, not per share. So if you sell shares of three companies on the same day, you pay the DP charge three times. The amount varies from DP to DP.

Buying shares does not attract a DP charge.

• Pledge and unpledge charges: When you pledge shares to get margin, the DP may charge a fee.

• Off-market transfer: Moving shares to another person's demat account outside the exchange.

• Dematerialisation: Turning old paper share certificates into electronic form.

• Physical statements or courier: Some DPs charge for paper statements.

Demat account charges are listed in the tariff sheet your DP gives you when you open the account. If the DP wants to raise demat account charges, it has to inform you in advance.

These charges apply each time you trade. Some are taxes and fees fixed by the government or regulators. Others are set by your broker.

This is the broker's fee for placing your order. It can be a flat amount per order or a small percentage of the trade value. It varies widely. You can compare a broker's brokerage charges on its plans page.

STT is a tax charged by the government on trades in listed securities. As per the rules at the time of writing, the main STT rates are:

The Union Budget 2026 raised STT on futures from 0.02 percent to 0.05 percent, and on options from 0.10 percent to 0.15 percent of the premium, from 1 April 2026. Rates on equity delivery and intraday did not change. This is as per the rules at the time of writing. Please check the current position before you invest.

The stock exchange charges a small fee on the value of each trade. The rate is set by the exchange and is different for each segment.

SEBI charges Rs 10 per crore of trade value. That is just Rs 0.10 on a trade of Rs 1 lakh.

Stamp duty is charged only on the buy side:

• 0.015% on equity delivery purchases

• 0.003% on equity intraday purchases

• 0.003% on options purchases (on the premium)

GST of 18 percent applies on brokerage, exchange transaction charges and the SEBI fee. It does not apply on STT or stamp duty.

Say you buy shares worth Rs 1,00,000 for delivery and sell them later for Rs 1,10,000. The broker rates used here are made up, only to show the maths. Exchange charges are rounded.

So the total cost of this round trip is about Rs 298. Your profit before tax is Rs 10,000 minus about Rs 298, which is about Rs 9,702. Capital gains tax is separate and depends on how long you held the shares.

Every time you trade, your broker sends a contract note. It lists the brokerage, STT, exchange charges, SEBI fee, stamp duty and GST for each trade. Your DP sends a separate statement for demat account charges such as AMC and DP charges.

Check these regularly. If you see a charge you do not understand, ask your broker. Many people look only at brokerage and forget the demat account charges, which add up over the years even if you trade rarely.

These are general points, not advice to choose any product or broker.

• Avoid very frequent small trades. Flat charges and DP charges hurt more on small trades.

• Sell shares of one company in one go. DP charges apply per company per day.

• Check if you qualify for a BSDA. If your holdings are small, it can cut your AMC.

• Understand intraday and F&O costs. STT and other charges on derivatives are higher after the April 2026 change, and intraday trading has its own cost structure.

• Read the charge list before opening an account. Look at demat account charges and brokerage together, not one at a time.

• Close accounts you do not use. Every extra demat account can carry its own AMC.

Demat account charges mainly include the AMC and DP charges, which your DP sets. Trading charges include brokerage, STT, exchange charges, SEBI fee, stamp duty and GST. From 1 April 2026, STT on futures rose to 0.05 percent and on options to 0.15 percent of the premium, while delivery and intraday rates did not change. Small investors with holdings up to Rs 10 lakh can use a BSDA to keep AMC low. Your contract note shows every charge, so read it after each trade.

Ans. Demat account charges are fees your depository participant charges for holding and moving your shares. The main ones are the annual maintenance charge (AMC) and the DP charge when shares leave your demat account. Some DPs also charge for account opening, pledges and transfers.

Ans. A DP charge is a fee applied when shares are debited from your demat account, usually when you sell delivery shares. It is charged per company per day, not per share. Buying shares does not attract a DP charge.

Ans. As per the rules at the time of writing, STT on equity delivery is 0.1 percent on both buy and sell. STT on equity intraday is 0.025 percent on the sell side. These rates did not change in the Union Budget 2026.

Ans. A basic services demat account (BSDA) is a low-cost demat account for small investors. If you have one demat account and holdings up to Rs 10 lakh, you can use it. There is no AMC up to Rs 4 lakh, and at most Rs 100 a year between Rs 4 lakh and Rs 10 lakh.

Ans. No. GST of 18 percent applies on brokerage, exchange transaction charges and the SEBI fee. It does not apply on STT or stamp duty.

Facts and rules verified as of 3 November 2026.

• SEBI: circular on the review of the basic services demat account (BSDA), raising the holding limit to Rs 10 lakh (2024).

• Finance Act, 2026: revised STT rates on futures and options from 1 April 2026; Finance (No. 2) Act, 2004 (STT provisions).

• Indian Stamp Act, 1899 (as amended in 2019): uniform stamp duty on securities transactions.

• SEBI: turnover fee of Rs 10 per crore.

• NSE: investor page on SEBI turnover fees, STT and other levies.

• This is as per the rules at the time of writing. Please check the current position before you invest.