If you are an Upstox user and want to know information about “How to reduce Upstox AMC charges?” or avoid unnecessary charges other than brokerage of Upstox then this article is for you.
As a trader or investor we face many uncertainties of the market to pull profit additionally while trading in the Stock Market we pay a sum extra towards brokerage. But once you go through Back Office reports we know the actual reality of it. We normally pay greater money for other charges than brokerage and these numbers will be shocking if you check it for the first time. Those all are the charges, fees, duties, taxes and cess we just pay other than the brokerage cost.
If you consult with any broker, only a few brokers will enlighten you about mandatory and non-mandatory costs and guide you to reduce non-mandatory cost.
But no worries, in this article I am going to share with you the legal and FREE trick to cut non-mandatory charges without affecting current trading style and capital. For that we have to understand different costs associated with trading and demat accounts and their point of charge.
Before proceeding further If you don’t know the difference between these accounts, click here to quickly understand the difference between trading and demat account.
As there are two accounts we open to trade that is demat and trading account but both of them have different criteria of charges.
Charges associated to Trading Account
Trading A/c charges for Transaction
- Brokerage commission charges
- STT/CTT (Securities / Commodities)
- IGST (Or CGST and SGST)
- Exchange Transaction Charges
- Clearing Charges
- SEBI Fees
- Stamp Duty
Trading A/c charges for Maintenance
- Upstox does not charge any maintenance charge for Trading Account
Charges associated to Demat Account
Demat A/c charges for Transaction
- Delivery Holding Charges (DHC) applicable for selling side + GST + Cess
Demat A/c charges for Maintenance
- Annual / Monthly Maintenance Charges (AMC or MMC) – Non-Mandatory charges.
Which charges can be avoided?
According to the SEBI’s Press Release No. 79/2012 dated 27th August 2012 small investors need not pay charges towards Demat Account maintenance. In Upstox case you can avoid Rs. 25 + GST if you fulfil following important conditions.
- You should not have any other demat A/c
- No Maintenance Charges for holding Investment value which is less than Rs. 50,000
- Rs. 100 annual maintenance for holding investment which lies between Rs. 50,001 to Rs. 2,00,000
Hence, we can reduce Maintenance Charges of Demat Account. Read the press release in detail by clicking on this for further information. [link](https://www.sebi.gov.in/media/press-releases/aug-2012/facility-for-a-basic-services-demat-account-bsda-_23308.html).
Steps to avoid Upstox AMC charges / MMC charges
By following these steps you can convert your regular demat Account to Basic Services Demat Account (BSDA)
Step 1 : Download & print the form below
Step 2 : Fill up details in fields as below
- Date : Enter today’s date
- Client ID : Demat A/c number of RKSV / Upstox (Check it at My Profile Section of this link)
- A/c Holder name(s) with respective PAN card numbers
- Make signature of A/c user(s)
- Courier form to the below address of Upstox / RKSV Securities India Pvt. Ltd.
Step 3 : Courier at Upstox’s Bhayandar Address
Do not courier the form to the address mentioned on the form. Because they have shifted their documents processing at the Bhayandar address itself.
You will get a confirmation email from Upstox when Upstox office receives your courier.
It will take some time to process on your request. On approval, you will successfully wave off Upstox AMC charges.
Some FAQs (Frequently Asked Questions) related to BSDA
I do much trading in intra-day. Can I still avail this benefit?
Yes. You can still avail this benefit because all the criteria are applicable to delivery holding value. So, without any worry you can add money to the trading account as much as you want to trade in intra-day. For Example, you have delivery holding of Rs. 35 thousand, and you are trading with capital of Rs. 5 lac. You still meet BSDA criteria to avail benefit.
I have multiple non-BSDA demat accounts. Can I still convert any of my demat account into BSDA?
This is an important answer that in SEBI’s PR 79/2012 does not mention specifically whether this scheme is applicable for first time demat account opener (Do not have existing demat account in India) or first time BSDA account holder (Have existing demat account in India). If you request to convert your demat account into BSDA, accepting or rejecting it depends upon their legal team. But it is worth to apply for converting into BSDA.
What if my application got rejected due to maintaining multiple Demat Accounts?
If you face this situation, you will have only one option to avoid AMC / MMC charges. That is, keep your multiple trading accounts by closing demat accounts which you do not use for investment purposes. And link any active demat account. For Example, you have two trading accounts A1 and A2 and that have linked demat accounts D1 and D2 respectively. You can use both trading accounts (A1 & A2) by keeping only one demat Account (D1). You just need to request for closing D2 demat account and link D1 demat account to A2 trading account.
- SEBI’s Press Release 79 of year 2012 – SEBI
- Upstox solution on converting regular demat account to BSDA – Upstox
- Upstox Address to courier documents – Upstox
- Difference between Trading and Demat A/c – Arable Life
If you feel that this article is helpful for you, please share with all your trader friends.