DP charges (Depository charges) will take your stock brokers while you are selling your holding stock.
Different stockbrokers taking different DP Charges. But why? and also all the confusion I will clear in this article.
Why DP Charges?
When you are Holding shares then your shares are holding in a Demat account in a digital form.
In India, only two companies available to hold your share in their Demat account, 1) CDSL 2)NSDL.
So, when you buy stocks on delivery bases then your holding stocks will be in CDSLDemat account or NSDL. And your share will be safe. If stockbroker shutdown their company then you can get your shares from CDSL or NSDL.
In this process, CDSL and NSDL charge a little bit which is DP charge or Depository charge. In this process, CDSL and NSDL charge a little bit which is DP charge or Depository charge.
Normally CDSL DP charge is Rs 5.5/- and NSDL DP charge is Rs 4.5/-. But generally, brokers add some extra money and charged more from you. That you may pay to brokers as DP charges.
DP Charges Rules
- If you are selling one company’s 1 share or 10000 shares on the same day, your DP Charges is the same.
- If you are selling two companies 2 share or 10000 shares on the same day. You have to pay 2 DP charges.
Basically I On the same day if you sell one company’s share multiple times or one time or in multiple numbers it’s doesn’t matter. For one company’s share selling, you have to pay one DP charge. If you are selling one company’s share multiple times in one day’s, you have to pay only one DP charge.
But if you sell 3 different companies stock in a day then you have to pay 3 DP charges.
DP charge of brokers
Zerodha takes shares on CDSL demat account, so CDSL Charge is Rs5.5/- and zerodha charge extra 8 Rupees.So, total is 5.5+8= Rs13.5+18% GST = Rs 15.93 as a DP Charges.
similarly, all the brokers DP charges are below:
| Broker Name | depository charges |
|---|---|
| 5Paisa | Rs12+18%GST |
| Zerodha | Rs13.5+18% GST |
| Upstox | Rs18.50+18% GST |
| Angel Broking | Rs20+18%GST |
Conclusion
I think the most important thing is depository charges for delivery based traders because delivery brokerage charges are free but If DP charge is higher then you have to pay more charges.
For an intraday trader, depository charges do not matter. because depository charges will not take in intraday trading.
so, that why while opening the Demat account you have to check brokerage charges and DP charges because you have to pay these charges multiple times.
other charges like account opening and AMC are one time or yearly one time.
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