What will happen if AMC for a Demat account is not paid?

The following will occur if you don't pay the AMC on your demat account:

1. The broker will bombard you with reminders via SMS, Email and phone calls.
2. Your demat account becomes inactive (dormant) after a certain period. You can't make any transactions until your demat account is reactivated.
3. You will need to pay the reactivation fee of Rs 500 and all dues (AMC + Interest) in order to reactivate.
4. You must first reactivate a dormant account in order to close it.
5. Brokers will refuse to allow you to open a new account if you don't have any holdings or have an account that isn't in use.
6. The broker (depository participants, DP) will keep the account dormant for ever. They will continue to send you reminders and a statement about your demat account.

Notice:

• Brokers can differ on the time it takes to declare an account inactive, reactivation fees, interest rates, and other details.
• If you aren't an active investor, open a Limetime AMC-free Demat account.