Quite often you must have seen DPs advertising about free account opening. Remember, that is only one of the costs of maintaining your DP account. Then, there is the annual maintenance charge (AMC) that is billed to you each year. This is normally based on the value of shares in custody. Additionally, each time you sell shares and the shares get debited to your demat account, the DP has to pay a charge to the NSDL or CDSL and that also gets debited to your account. Apart from that, DPs also charge if you ask for physical statement, duplicate statement or statement of holdings / transactions for proof purposes.

If you DIS gets rejected due to technical reasons then the DP again charges you a penal charge. When you calculate the total cost of your demat account, you need to look at the sum total of all these charges to get a holistic picture. When you add all these costs that is when you get the full picture of your total DP costs. Also when the DP AMC gets billed to your bank account if your bank has insufficient funds then the ECS return charges will also be debited to your account. All these factors will add up to your total cost of the DP account.