Can the DP cost the AMC and different quarterly costs cost (e.g. folio / ledger costs and many others.) on the Dormant / inactive accounts?

can the DP cost the AMC and different quarterly costs cost (e.g. folio / ledger costs and many others.) on the Dormant / inactive accounts ?

I believe DP don’t cost AMC on the dormant account . Atleast it doesn’t mirror on the ledger .However , when the shopper re-activate re-generate the account, the DP cost the AMC of all of the earlier pending years with retrospective impact.

Or if I give the closure type then additionally the DP cost the AMC of all of the earlier pending years with retrospective impact.

Am I proper ?

@mohitmehra@ShubhS9

DP don’t cost AMC on the dormant account

AMC will get charged so long as the demat account is open and isn’t a kind of BSDA accounts the place no/decrease charges of AMC will get levied. These costs are posted on the ledger. For those who’re holding your account with Zerodha, the billing is completed on a Quarterly foundation.

AMC will get charged so long as the demat account

U imply to say . Though , the account is dormant, the AMC could be hold charging .

However , I’ve a question .I even have demat account in Angel broking , which is dormant . The angel DP stated they don’t cost AMC to dormant account resulting from GST adjustment difficulty .However , as soon as the account is reactivated, they could or could not cost the AMC of all of the earlier pending years .So, I m nonetheless confused.

U imply to say . Though , the account is dormant, the AMC could be hold charging .

Brokers have been suggested to mark a Buying and selling account ‘Dormant’, in case there’s no buying and selling exercise for a interval of 12 months. There are not any such guidelines for a demat account, so no dealer resorts to marking a demat account dormant except there’s an express instruction from the shopper which once more may be very uncommon.

As such, in case your buying and selling account is dormant, your demat account continues to stay in Lively state thereby topic to AMC being charged.

Is the AMC nonetheless charged if the holdings in demat account is NIL and it’s not a BSDA account?

I’ve account with zerodha since 2021 and with above situation (Zero demat/fund stability) and by no means charged any AMC costs.

Ofcourse i’ve demat account with different brokers even earlier than opening with Zerodha (Therefore Zerodh’a account is just not BSDA)

The BSDA standing is up to date by the CDSL depository each month and never on a real-time foundation. So as soon as the knowledge is relayed by the CDSL, the account shall robotically flip right into a BSDA account.