All the demat accounts in India attract certain costs either for resident demat accounts or non-resident demat accounts. Central depositories and the stockbroker depository participant charge the demat account and transaction-related fees. However, in the case of NRI, they also pay governmental taxes. The following are the charges for NRI demat account –
Account Opening Fee (One Time)
It is the most common fee that every stockbroker or depository participant in India charges to all their customers, whether NRIs or resident Indians. The brokerage firm charges the account opening fee for processing and opening one’s demat account with that broker. It is a one-time fee paid during the account opening process. Sometimes, the account opening charges can be discounted due to promotional campaigns by the brokerage firms. In other cases, the promotional campaigns by brokerage firms waive the account opening charges entirely.
Annual Maintenance Charges (Yearly)
To maintain and run one’s demat account with brokers, there are certain charges. Generally, this fee is charged annually by the brokers and referred to as AMC or Account Maintenance Charge. This fee remains the same for both residents and NRIs. Whether it is an NRI demat account or a resident demat account, the individual has to pay these fees every year to ensure that they can use this account for the following year. However, this fee is much lower than the account opening fee.
Debit Transaction Charges
Whenever the shares in the demat account are sold or withdrawn, a nominal fee is charged. This fee is known as a debit transaction cost. The demat account holder must pay this fee at every fund withdrawal from their demat account. Usually, a fee is chargeable every time the individual sells shares, and the shares are withdrawn from the demat account. Sometimes, brokers also charge a flat fee for every transaction. Otherwise, some of the brokerage firms charge based on the percentage value of every transaction.
Other Charges
There are other charges associated with demat accounts such as pledged fees and fee for updating personal information, i.e. address, mobile number, etc.; some brokerage firms also charge fees for portfolio modification.
