What happens if I do not pay AMC for a demat account?

If you do not pay the AMC for you're demat account, following things will happen: You will be bombarded with reminders via Email, SMS and Phone Calls by the broker. After some time, your demat account is declared a dormant account (inactive). This means you can't do any transaction until it's reactivated. To reactivate, you have to pay the reactivation fee (~ Rs 500) and clear all the dues (AMC + interest). To close a dormant demat account; you have to reactivate it first. If you have no holdings and have a dormant account with a broker, they will not allow you to open another account. The brokers (depository participants or DP) hold the dormant account forever. They will keep sending you reminders and a demat account statement. Note: The time to declare an account dormant, reactivation fee, interest rate, etc differs by a broker to broker. Open a Lifetime AMC Free Demat Account, if you are not an active investor.