Free Demat Account Without AMC Charges: How BSDA Keeps Your Annual Fee at Zero
- October 8, 2026
- Posted by: Neeraj Pandey
- Category: Uncategorized
BSDA AMC: nil up to Rs 4 lakh holdings. Eligibility: single demat account holders. Univest account opening: Rs 0. Depository: NSDL. Regulator: SEBI.
Quick Answer
A free demat account without AMC charges is possible through SEBI’s Basic Services Demat Account (BSDA), where the annual maintenance charge is nil while your holdings stay up to Rs 4 lakh. BSDA is meant for individuals with a single demat account, and you may need to ask your broker to tag the account. Univest charges no account opening fee, and you should read its charge sheet in the app for AMC terms above the BSDA limit.
A free demat account without AMC charges is the cleanest way to hold shares if your portfolio is small, because the annual maintenance charge is usually the only fixed cost you pay even when you never trade. SEBI built the Basic Services Demat Account to remove that cost for small investors.
This guide explains how BSDA works, who qualifies, what happens when your holdings cross the limit, and how to check the AMC terms before you open a free demat account with Univest.
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What Is AMC on a Demat Account?
AMC is the annual maintenance charge that a depository participant bills for keeping your demat account active. It is charged whether or not you trade, which is why a free demat account without AMC charges is so useful for long-term and low-balance investors. AMC is separate from brokerage and from DP charges, which are billed per sale.
How a Free Demat Account Without AMC Charges Works Under BSDA
A free demat account without AMC charges works under BSDA by tying the fee to your holding value. As per the norm, AMC is nil when the value of securities in the account is up to Rs 4 lakh. Above that value, the depository participant’s regular or reduced slab applies, so the saving lasts only while your portfolio stays below the limit.
| Holding value in account | AMC under BSDA norm | What to do |
|---|---|---|
| Up to Rs 4 lakh | Nil | Keep the account tagged as BSDA |
| Above Rs 4 lakh | Slab or regular AMC applies | Read the charge sheet for the applicable rate |
Who Can Get a Free Demat Account Without AMC Charges?
Individuals who hold only one demat account can opt for BSDA. If you already have another demat account with a different broker, you cannot hold BSDA in both, so choose the one where you plan to keep your investments. Joint accounts are generally outside the BSDA facility, and eligibility rules can change, so confirm with the depository participant.
How to Open a Free Demat Account Without AMC Charges Online
- Open a demat account online through the Univest app with PAN, Aadhaar eKYC and bank details.
- Check the charge sheet in the app for AMC terms.
- Ask support to tag the account as BSDA if you qualify.
- Track your holding value so it stays below Rs 4 lakh if you want to keep AMC at nil.
Use the Univest Screener to build a small portfolio inside the BSDA limit
What Else Costs Money in a Free Demat Account Without AMC Charges?
Even a free demat account without AMC charges carries other costs. DP charges apply each time you sell shares, brokerage applies according to the plan, and statutory levies apply on every trade. For Univest, account opening carries no charges and the broking page lists 0 brokerage on intraday, delivery and F&O, with the 30-day free window and Rs 18 per order terms described in the help FAQ.
- DP charges: billed per sell transaction
- Brokerage: plan dependent
- STT, GST, exchange charges, SEBI fee and stamp duty: statutory
Smart Ways to Keep a Free Demat Account Without AMC Charges Low-Cost
A free demat account without AMC charges stays at nil only if you manage it, and the best habits are simple. The best ways to keep a free demat account without AMC charges actually low-cost to run are simple habits. Hold fewer, larger positions so DP charges stay low, avoid pledging shares unless you need margin, and review the monthly NSDL statement for unexpected debits.
Demat Account AMC and Demat Account Opening Charges Compared
Demat account opening charges are a one-time fee, while the demat account AMC is billed every year, which is why AMC deserves more attention than the opening fee. Univest charges nothing at opening, and the AMC for your holding level is shown in the charge sheet.
If you hold a single demat account and your portfolio is within the BSDA limit, a free demat account can stay free of AMC for years. Check the demat account AMC again whenever your holdings approach Rs 4 lakh.
Download the Univest iOS App or Univest Android App to open a demat account online and monitor your holdings.
Choosing Between BSDA and a Regular Demat Account
A free demat account without AMC charges makes sense for anyone with holdings up to Rs 4 lakh and a single demat account. Larger portfolios should compare the total yearly cost, including AMC slabs and DP charges, before choosing. Whatever you pick, read the charge sheet first and keep in mind that markets carry risk regardless of how low the account cost is. You can open a free demat account without AMC charges with Univest and ask support to tag it as BSDA.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
FAQs on Free Demat Account Without AMC Charges
Is there a free demat account without AMC charges?
Ans. Yes, a Basic Services Demat Account (BSDA) has nil AMC while your holdings are up to Rs 4 lakh. It is meant for individuals with a single demat account.
What is BSDA in a demat account?
Ans. BSDA is SEBI’s Basic Services Demat Account facility for small investors. It offers lower or nil annual maintenance charges based on the value of your holdings.
What happens if my holdings cross Rs 4 lakh in a BSDA?
Ans. The AMC nil benefit stops, and a slab or regular AMC applies as per the depository participant’s charge sheet. Review the charge sheet before your portfolio crosses the limit.
Can I get a free demat account without AMC charges at two brokers?
Ans. No, BSDA is meant for individuals who hold only one demat account. If you have another account, choose which one to keep as BSDA.
Does Univest charge for opening a demat account?
Ans. No, Univest states there are no account opening charges. Check the charge sheet in the app for AMC and DP terms that apply after opening.
Are DP charges free in a free demat account without AMC charges?
Ans. No, DP charges are separate from AMC and apply each time you sell shares from the account. Brokerage and statutory levies also apply.
How do I open a free demat account without AMC charges online?
Ans. Open an account in the Univest app with PAN, Aadhaar eKYC and bank details, then ask support to tag it as BSDA if you qualify. Keep holdings within the limit to retain nil AMC.
