Most stockbrokers these days do not charge any fees for delivery trade but whenever you sell shares certain fees called DP charges got deducted from your account. Considering this fee, let’s check what is DP charges in Kotak Securities.
DP Charges Means in Kotak Securities
DP charges are the kind of charges that the depositories levy on the traders or investors every time they sell their shares (It is only charged on selling, not buying). This is the reason why it is called debit transaction charges.
Kotak Securities has 4 trading plans and in all the plans, it gathers 0.04% of the total value of shares sold as the DP charges. However, the minimum depository fee a person has to pay in Kotak Securities is ₹27.
How DP Charges are Calculated in Kotak Securities?
Everyone gains an idea of how brokerage is calculated but when it comes to debit fees how it is charged or calculated? To understand this let’s consider an example.
Mr.Gupta sells the shares worth ₹ 60,000 using his Kotak Securities account.
His DP charge in this case = ₹ (0.04% of 60,000) = ₹24
But since the minimum fee is ₹27 hence he will end up paying the highest value as DP fees.
On the other hand, if the value of the scrip is 1,00,000 then DP Charges he has to pay to the broker is:
0.04%*1,00,000= ₹40.
So, next time you find some unknown deduction from your trading balance, then check the ledger report to find the Debit transaction fees.
