We are a registered Depository Participant (DP) with CDSL. When you complete the onboarding process, a demat account is opened in your name to hold securities electronically. Any delivery buying or selling transactions that take place on stock exchanges are settled and recorded in your demat account by way of a credit or debit entry.
As your DP/Broker, we perform various transactions as per your instructions and these transactions are chargeable as per tariff sheet . Some common types of transactions include the Pay-out and Pay-in of securities when you buy and sell, pledge, un-pledge, invoke, dematerialization, re-materialization, and off-market transfer of securities.
These charges are applicable on each transaction, regardless of the quantity involved. Trade-related charges such as brokerage, STT (Securities Transaction Tax), and stamp duty are clearly stated in the contract notes we issue to you. However, DP charges are separately calculated daily in our back-office system and deducted from your trading ledger. A detailed breakdown of these charges is sent to your registered email address monthly, with the subject line “CDSL Demat Transaction & Holding Statement.” These details can also be checked as a drill down to “DP transaction charges” entry in your trading ledger.
The broad framework of DP charges can be summarised as follows:
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DP Charges are deducted on the execution date, which is when shares are transferred out of demat account.
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Charges for Sell are applied at per Scrip / ISIN level irrespective of number of transactions in the scrip for the day. These charges are debited from your trading ledger on T+1 day i.e. on the settlement day when the share are debited in demat account.
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Charges for Pledge, Unpledge, invoke etc are applied at a per Scrip / per ISIN for each transaction irrespective of quantity.
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When you sell securities, we initiate an early pay-in of the shares to the depository in real time. This ensures you receive 100% margin against the sale proceeds without delay. To make this possible, early pay-in instructions are sent to the depository immediately as and when each sale happens.
According to CDSL’s fee structure, a charge is applied for every early pay-in instruction. So, if you sell the same stock multiple times in a day or your order is executed at different times, CDSL charges for each individual transaction.
At Dhan, however, we only debit you once per stock sold in a day, regardless of how many times it’s sold. We cover the cost of any additional early pay-in charges to simplify your experience and reduce your costs. -
If there are multiple pledge transactions then, unpledge transactions will also be multiple corresponding to respective pledge transactions and thus, charges will be levied on each individual pledge and unpledge transaction.
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If only partial quantity is unpledged of the total pledged quantity, then, unpledge charges will be applied on partial unpledged quantity and for remaining balance quantity, the unpledge charges will be applied on same lines until the pledge is closed.
To provide further clarification, please refer to the table below:
Important Notes:
- Freeholding shares are those shares in your demat account which are either not pledged or locked-in for any reason.
- Invoke is done when shares are sold by our risk management team (RMS)
- CUSPA, refers to a client’s unpaid securities account. The shares are transferred to CUSPA when the amount for purchase of shares is not paid by T+1 day 8 AM
- The current rate of GST is 18% on depository services.
- We may also unpledge shares which will be removed from the Approved List for which applicable charges will be levied.
Happy Trading & Investing,
Manisha - Operations @ Dhan
