Transfer charge refund and no AMC for the first year

Zerodha, the Indian discount brokerage, announced two new initiatives aimed at reducing the cost and friction of switching brokers or opening a new account. Both changes take effect from June 1.

Transfer charge refund

When clients transfer their stock holdings from another broker to Zerodha, their former broker typically charges a fee per stock — ranging from ₹10 to ₹30. For a portfolio of 15-20 stocks, this can total a few hundred rupees. Starting June 1, Zerodha will refund these depository transfer charges up to ₹500. The refund is available not only to new customers but also to existing Zerodha account holders who transfer in holdings from another broker.

To claim the refund, users must first complete the transfer (online via CDSL Easiest or offline using a Delivery Instruction Slip) and then submit a ticket to Zerodha with the relevant details. The brokerage also notes that equity delivery trades already carry zero brokerage at Zerodha, and users can upload original purchase details on Console for accurate portfolio tracking.

No AMC for first year

For all new resident individual accounts opened from June 1, Zerodha is eliminating account maintenance charges (AMC) for the first twelve months. The waiver applies regardless of the value of holdings in the account. Minor accounts already enjoy zero AMC.

Zerodha acknowledged that while actual AMC costs are often negligible — thanks to SEBI’s Basic Services Demat Account (BSDA) framework — the perception of a recurring charge deters some first-time investors. Under BSDA, AMC is nil for holdings below ₹4 lakh, ₹100 per year for holdings between ₹4-10 lakh, and ₹300 per year above ₹10 lakh. The new offer removes that concern entirely for the first year.

Combined with Zerodha’s existing zero brokerage on equity delivery, zero brokerage on direct mutual funds via Coin, and free account opening, the brokerage hopes to lower entry barriers for new investors.