Demat Account Charges In India

Introduction

The Ministry of Finance reported 235 lakh new Demat Accounts during FY26 up to December’25. Indians are now increasingly moving from traditional investments such as real estate and gold to equity and bond markets. India’s stock market is the 4th largest in the world with a market capitalisation of approximately ₹426 trillion.

If you plan to invest in stocks and bonds, you need to open a Demat Account with a SEBI-registered and trusted broker. A Demat Account involves certain charges; while they may seem insignificant, they can add up and erode your net investment returns. The following are the fees involved in opening and using a Demat Account:

Account Opening Charge

Earlier, you had to pay a certain fee to open a Demat Account with a Depository Participant (DP) or broker. Nowadays, most DPs allow individual investors and HUFs (Hindu Undivided Families) to open a Demat Account and Trading Account at no charge.

With Upstox, you can open a Demat Account online without visiting the DP’s office. Simply download the DP’s app and enter your personal details along with identity proof, address proof, and bank details.

Once all required documents are submitted, your DP will verify your details and activate your Demat Account within 24–48 hrs.

Annual Maintenance Charges (AMC)

To manage your Demat Account, your Depository Participant (DP) or broker charges an Annual Maintenance Charge (AMC). This is a nominal fee for the services provided by the DP and varies depending on the type of Demat Account you choose. If you opt for a BSDA (Basic Services Demat Account), you will be charged a lower premium compared to NRI or corporate Demat Accounts.

With Upstox, there is no AMC for the first year; from the second year onwards, an affordable AMC is charged.

Depository Participant (DP) Charges

DP charges refer to brokerage charges for the depository transaction each time you sell your securities via a Demat Account. Usually, DPs charge around ₹15-20 per ISIN only for the sale of securities.

For instance, selling 5 shares of a company incurs a flat ₹15-20 DP charge, as charges are applied per ISIN per day, not per share.

Pledge and Unpledge Charges

Under the Margin Trading Facility (MTF), investors pledge their existing holdings as collateral with the Depository Participant (DP) to borrow funds for trading. Additionally, a nominal DP fee is charged for pledging and unpledging shares, typically ranging from ₹15–20 plus GST per scrip/ISIN, along with standard brokerage and interest charges.

Other Charges

You may be charged certain additional charges, such as: