can the DP charge the AMC and other quarterly charges charge (e.g. folio / ledger charges etc.) on the Dormant / inactive accounts ?
Can the DP charge the AMC and other quarterly charges charge (e.g. folio / ledger charges etc.) on the Dormant / inactive accounts?
I think DP don’t charge AMC on the dormant account . Atleast it does not reflect on the ledger .
But , when the client re-activate re-generate the account, the DP charge the AMC of all the previous pending years with retrospective effect.
Or if I give the closure form then also the DP charge the AMC of all the previous pending years with retrospective effect.
Am I right ?
AMC gets charged as long as the demat account is open and is not one of those BSDA accounts where no/lower rates of AMC gets levied. These charges are posted on the ledger. If you’re holding your account with Zerodha, the billing is done on a Quarterly basis.
U mean to say . Although , the account is dormant, the AMC would be keep charging .
But , I have a query .
I also have demat account in Angel broking , which is dormant . The angel DP said they don’t charge AMC to dormant account due to GST adjustment issue .
But , once the account is reactivated, they may or may not charge the AMC of all the previous pending years .
So, I m still confused.
Brokers have been advised to mark a Trading account ‘Dormant’, in case there’s no trading activity for a period of 12 months. There are no such rules for a demat account, so no broker resorts to marking a demat account dormant unless there’s an explicit instruction from the client which again is very rare.
As such, if your trading account is dormant, your demat account continues to remain in Active state thereby subject to AMC being charged.