Zerodha is a discount broker, known for paying minimal brokerage fees. But how much DP charges in Zerodha? Is it free? Are these charges displayed in our account?
Let’s find out to know when and how DP charges are imposed on investors.
What Are DP Charges In Zerodha?
When you buy a stock, it is sent to your Demat account, but when you sell it, there is a process to transfer the stock to the buyer’s account. And to complete this step there is a specific fee that is called the DP charges charged by depositories (NSDL and CDSL).
These fees are intended to operate your Demat account and are charged when shares are debited from the account. These charges cost Rs.13.5+18% GST per scrip per day.
Isn’t it confusing? Let’s understand by considering different scenarios:
Situation 1: You have 100 shares of Company A. One particular day you sell off 50 shares of A in the morning and the rest of the shares on the same day after a while.
Here since the debit of single scrip takes place in a day, the DP charges would be ₹13.50/- only.
Situation 2: You have 100 shares of Company A. You sell of 50 shares on Monday and another 50 shares on Tuesday.
Since the transaction happens on two different days, hence the DP charges would be ₹27/-.
Situation 3: You have 100 shares of Company A and 100 shares of Company B. You sell 50 shares of A and 50 shares of B.
Here two different scrips are debited from your demat account, hence DP charges would be twice and are equal to ₹27/-.
From the above three situations, it is clear that DP charges are charged per scrip and not on the quantity or number of shares. Also, it is charged per day. Thus, selling shares of the same scrip on two different days will lead to separate DP charges.
How Much DP Charges in Zerodha for Intraday?
There are intraday traders who buy and sell the shares within the day. According to SEBI rules, shares will be credited to your Demat account within 2 days and no shares will be added to your Demat account for intraday transactions.
So, there are no charges for intraday traders?
Of course Yes. Stocks are not credited or debited to the user’s Demat account, so there is no DP fee for intraday traders.
How Much DP Charges in Zerodha for BTST?
There are no DP charges for BTST at Zerodha until June 2nd, 2021 But now the DP charges are applicable for the BTST because of the new settlement process. In this process, the clearing member can now add shares to the customer’s Demat account via EPI securities instead of sending those shares from the customer’s Demat account to the broker pool and then to the clearing member.
Let’s grab this with an example:
You bought 100 shares of Company X on Monday and sold it on Tuesday, and a BTST transaction is carried out. The shares will be credited to your Demat account in T+2 days after receiving them from clearing members. On the same day when the shares are credited into your Demat account, the shares will be sent for a delivery transaction that is done on Tuesday.
These shares are not visible in the Kite app but can be viewed in your ledger. Therefore, the DP charge for BTST is Rs.13.5 + 18% GST per scrip per day.
Here are a few points to be considered for the DP charges:
- DP charges are directly posted on your ledger.
- The charges are per scrip per day and are not based on the number of shares you sold.
- Bonuses and splits will be credited directly to your Demat account.
For further information on the DP charges in Zerodha or other related queries, feel free to get in touch with us.
