DP Charges for NIFTYBEES and BANKBEES

  1. Are DP Charges applicable for NIFTYBEES and BANKBEES
  2. Why are DP Charges applicable.
    I have read multiple posts on DP charges, but unable to understand why the charges are so high.
    Ref: Why do we need dp charges?
    Now that everything is maintained electronically ( i presume) are 13+ Rs. per sell of script too high or 4.5 whichever is correct.
  3. I read multiple places where zerodha has given justification on different DP charges by diff brokers.
    Zerodha says other brokers charge higher brokerages, so can afford to lower DP.
    How is brokerage charged by Broker, and DP charged by DP different entities, related to each other
    Ref: Are DP charges charged irrespective of the quantity?
  4. I see that 8 Rs is going to Zerodha as DP charges, so shouldn’t zerodha advertise this, that 8 is going to zerodha pocket, and not advertise 0 brokerage
    ref: https://stocksfetcher.com/dp-charges/

I am working on HFT for NIFTYBEES and BANKBEES, based on recent volatility. I was hoping to take advantage of zero brokerage from zerodha. But looking at 13+ charges per sell side, these trades are not viable.

So request you to please reply on above queries so that I can give up on my plan/strategy.

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bro… dp charges are charged whenever there is debit of shares from your demat account, if you are doing intraday or btst there is no dp charge.

it’s self explanatory, depositary too has business to run, no? there’s technology involved to make operations smooth, personal required to take care if things… this is source of revenue for them.

again self explanatory… most brokers are depositary participants now, so they can do this… you will again say if they are same then why charge dp charges, well again it’s source of revenue…

Re. 4. brokerage is something which you incur from trading and trading is done at exchanges not depositary… so both are different things…

charges are part of trading/investing, just like you the entities offering services are here to make some bucks too… also you are trying to do high frequency trading in scrips which are not that much liquid, more than charges you will be paying to broker, you will give more away to impact costs due to poor liquidity.

if you don’t know what impact cost is… then you should read this https://www1.nseindia.com/products/content/equities/indices/impact_cost.htm

nifty and bank bees are products for investing not trading, if you want to trade in nifty and bank nifty maybe you should consider trading f&o.

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Hi @FancyyCosmonautt
Appreciate your quick response on the queries.
But most of my questions are still unasnwered, so i will post again with revised questions.
In this post, I will revert on the additional comments that you have added in the post
Firstly, I posted these questions to get knowledge and not to lower my indivdual charges.
I do not agree that anybody can get away by saying “charges are source of revenue”, i remembered old days (15 years back) that brokers used to justify Rs. 85 brokerage
My limited point still is, keep the charges transparent.
Debate on investing/trading is a never ending affair, but not a point of discussion in this thread.

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Rephrased questions:
1.1 Are ETF’s like N/B BEES treated same as shares (for Sell transactions by DP)
1.2 By “DP charges” I read charges given to NSDL/CDSL, I am sure Zerodha is not my DP, so why is Z taking Rs 8 per Sell under the name of “DP Charges”. Its ok to charge Rs 8, but shouldn’t Z charge it under Brokerage and not DP Charges
I am asking it from transparency perspective.

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Yes, Nifty Bees and Bank Bees are treated same as stocks, and DP Charges are applicable when you sell these from your Demat account.

Zerodha is also depositary participant (DP) along with being a broker. Also, both brokerage and DP charges are different, that is why these are charged differently.

I agree to the question. As long as there is transparency on these charges, investors will appreciate and justify. We know there will be huge expenses and other operation activities also profit model, at the same time these charges are not something investors get notified and it gives wrong meaning.

I will tell you my expirience, few months back when i rebalnced small case and coincidentally checked my fund statements, i see 200 odd rupees charged by just mentioning “DP Charges”, i was not sure of what this is, double checked contract notes found nothing.

I raised case with Z and got the justification, i then decided small case strategy will not work as it buys and sells in pea nuts and incur huge charges in the name of “DP charges” for small investors.

Good update is that now fund statements will tell you on which script the dp charge is done but still not transparent.

My recommendations will be to get these charges under contract note(with break up). And in my openion, these charges are good and makes investor think twice before selling which will boost long term investment mindset.

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Update: I see that these charges now depicted as Other Charges under profit/loss harvesting statments.

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