What Happens If I Do Not Pay AMC For A Demat Account?


 If an investor is dealing with an online Demat account, it is mandatory to pay Demat annual maintenance charges (AMC) as non-payment of AMC may lead to the dormancy of the Demat account. Regular payment of AMC can save the account holder from paying heavy penalties. An investor should avoid paying as it is an unnecessary expense. Furthermore, if the investor decides to activate the Demat account again, he will have to pay the reactivation charges and the outstanding amount.

Read Also:- 5 Things To Know Before The Stock Market Opens On Thursday

If there are no holdings in an investor's inactive Demat account, he may not be allowed to open another account. If an investor chooses to close the dormant account, he will have to activate it priorly then can apply for closing the account. In case of non-payment of annual maintenance charges, the investor’s stockbroker will send messages frequently before declaring the account inactive. If the investor does not pay the dues within a specified time, his account will be declared dormant and all assets in the account are frozen. It is suggested to investors to pay their annual maintenance charges every year irrespective of whether they are holding shares or securities in their online Demat account or not. Some top stockbrokers have waived off the Demat annual maintenance charges for the first year.

Comments

Post a Comment

Popular posts from this blog

Opening Demat Account Online Becomes Easy

Image
Promising stock markets have witnessed a remarkably increased number of demat accounts. Screen-based trading using demat accounts provide solutions to trading issues faced by investors in ground-based stock exchanges transactions.  Every investor needs a demat account to participate in the stock market. Investors are not allowed to approach stock exchanges directly. You can buy or sell shares on a stock exchange through online demat accounts and trading accounts with a registered depository participant or stockbroker with authorities in the stock market. These authorities are Depositories in India (CDSL and NSDL) and SEBI (Securities Exchange Board of India). Registered stockbrokers and DPs execute trading transactions in the stock market for investors.  You can open your demat account online quickly following easy steps. The data shows that the number of demat accounts has increased exponentially within the past two years. Around 4 lakh new demat accounts were created every...
Read more

7 Commonly-Used Intraday Trading Strategies

Image
The stock market offers opportunities to intraday traders to book profits irrespective of whether the market is going up or falling, provided they can find the right stocks for intraday trading. If the market is going down, sell first and buy later using a short-selling facility, or vice versa. If the trend continues, traders can make low-risk entries with a great potential for higher profit. Using real-time charts, they need to be smart enough to isolate the current market trend from any surrounding noise. Check also:-  www.bajajfinserv.in/insights/trading-account Intraday trading is an active form of trading that involves high risk/rewards. The fundamental techniques used for intraday trading are different from those applied to long-term investing. Intraday traders need to filter the stocks to find stocks with ample liquidity. They need to be quick on their moves and ensure that they stick to the intraday trading rules without flowing with the moment. Traders need to stick to us...
Read more