what is dp charges in groww ?
DP Charges mean Depository Participant Charges. In simple language, this charge is applicable when you sell any share or securities from your Demat account.
A Demat account is an electronic account where the shares or other securities you buy are held in digital form. a Depository Participant (DP) is the institution (like a broker or bank) that acts as an intermediary between the Depository (like NSDL or CDSL) and you, holding your shares in electronic form and assisting in transaction settlement.
When you sell shares, the shares are debited from your Demat account and delivered. The Depository and your DP charge a fee for this debiting process, which is known as the DP charge.
DP Charges in the case of Groww:
Groww provides Demat services through the CDSL Depository. In Groww, the DP charge is: Per script debit per day: ₹15 (Groww charge) + ₹3.50 (Depository charge) = ₹18.50 Along with this, 18% GST will be added. Therefore, the total DP charge per script debit per day will be ₹18.50 + 18% GST.
Please note: This charge does not depend on the quantity of each share, but rather is applicable only once for selling shares of a specific company on that day, regardless of how many times you sell. That is, if you sell 100 shares or 1000 shares of the same company on a single day, the DP charge will be applied only once. However, if you sell shares of different companies on the same day, the DP charge will be applied separately for selling shares of each company. If the debit value is less than ₹100, Groww does not charge anything; only the Depository charge and GST on it may apply. There might be a slight discount on the Depository charge for women (e.g., ₹3.25). This DP charge is not shown directly on the contract note of your sold shares, but you will see it in your fund statement or ledger.
Is DP Shear Charge Based on Quantity?
No, DP charges (DP Charges) do not depend on the quantity of shares.
DP charges generally depend on how many different companies’ shares you sell on a particular day.
In simple terms:
If you sell shares of one company as many times as you want or in any quantity on a single day, the DP charge will be applied only once for selling the shares of that company. But, if you sell shares of two different companies on the same day, the DP charge will be applied twice (once for each company). That is, DP charges are not determined based on the number or quantity of shares; they are levied once per day based on each unique scrip or stock sold when that scrip is debited from your Demat account.
DP Charges: Payable on Buy, Sell, or Both?
No, DP charges (DP Charges) are not applicable on both buying (Buy) and selling (Sell).
DP charges are applicable only when you sell shares or any other security from your Demat account.
When you buy shares, the shares are credited to your Demat account. There is no DP charge for this credit.
But when you sell shares, the shares are debited from your Demat account and transferred to the buyer’s account. The DP charge is levied for this debiting process.
Therefore, DP charges are applicable only in the case of selling (Sell) and for delivery transactions. In the case of intraday trading, where delivery of shares is not taken, DP charges are generally not applicable (unless your position is automatically squared off and goes into delivery).
Is Intraday Trading Free from DP Charges?
Yes, generally, DP charges (Depository Participant Charges) are not applicable in the case of intraday trading.
The reason for this is that in intraday trading, you buy and sell shares within the same trading day. This means the shares do not come into your Demat account as a delivery, nor do they go out of your Demat account as a delivery. The trade is squared off within the day, and only the profit or loss is settled financially.
DP charges are applicable only when shares are debited from your Demat account, which usually happens during delivery-based selling.
If your intraday position is not automatically squared off by the end of the day and goes into delivery (which usually does not happen or might have penalties), only in such exceptional circumstances might DP charges be applicable. But for normal intraday trading, DP charges are not applied.
