Why does Zerodha charge such high transfer fee of 0.03% of transfer value? What is the rationale behind this? Is this money charged by CDSL to the broker? Ideally such transaction shouldn’t be charged in the first place and even if charged they should be capped to certain value like in case of pledge transaction.
I couldn’t understand the risk involved in this for the broker or the client, what am I missing here given that its a simple e-DIS transaction executed by the client themself in CDSL Easiest. Please explain what is the risk involved in transfer of shares from one DEMAT account of mine to another DEMAT account of mine for it to merit such high transfer charges.
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@dheeraj.r there is a technical, a fat finger, & phishing risk. If you transfer shares out and still can sell on the trading platform, the liability is on us. If you, by mistake, transfer to the wrong DP ID, you can potentially come back to us saying it was our mistake (Yes, has happened in the past). If your account is compromised, someone else could transfer securities out to another DP ID, & we potentially could be held part-accountable for that as well.
As the risks go up, so does the cost. What we charge is in sync with what the industry charges, at the lower end.
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