Zerodha's High DP charges

Zerodha
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Equity Investments are free in Zerodha. Investors are happy, well, go through their charges closely. Zerodha will not charge any money in terms of brokerage on equity delivery investments. But when you sell your scrip, you will be charged 13.5 rupees on each scrip per day. Now you tell me: Why Zerodha does not disclose this important detail on their homepage where it boasts of Zero brokerage.

Ex: If you buy 10 shares of Ril, 10 shares of SBI, 10 shares of Infy, 10 shares of ITC, 10 shares of Tata Steel, 10 shares of Petronet LNG, 10 shares of Sunpharma and 10 shares of Tata Motors, then your total number of scrips in your portfolio is 8. (Suppose you bought this on 01st Jan, 2017). For this purchase, no brokerage would be charged. (Sounds good, isnā€™t it, but the catch is coming when you sell them)

Hidden Charges Exposed: Now suppose you sell your whole above equity holding on 30/06/2017, you would not have to give any brokerage to Zerodha, (are you happy, ofcourse you are happy), but the catch is going to eat you now. The DP charges for all the 8 scrips is 13.5 rupees per day.

So, if you have bought the holdings on 1st Jan, 17 and sold your holdings on 30th June, 17, how many days? (31+28+31+30+30+30) = 180 days.

No. of scrips = 8

DP charges: 13.51808 =19440 rupees.

Please go through this paragraph below with the link:https://zerodha.com/charges

DP (Depository participant) charges

ā‚¹13.5 per scrip per day(irrespective of quantity) debited from demat account when stocks are sold. ā‚¹5.5 per MF (irrespective of quantity) debited from demat on redemption. Charged by depository (CDSL) and depository participant (Zerodha)

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It will be 13.5*8=108 and not 19440, Dp charges are not depended on number of days of holding and not charged on per day basis.Dp charge will be same if u sell in 2nd or 1 year after which i 13.5

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Have you really experienced it?

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Depository Participant (DP) is termed as DP Charges . This DP charges is a source of revenue to the Depositories (CDSL & NSDL) & its participants. Similar to how Exchanges charge Transaction fee, Depositories & Depository Participant (DP) charge DP charge whenever you sell any shares from demat account.
All brokerage houses has this charges and charged only during selling or debit from Demat account which ranges from Rs 13 to 30.
Zerodha brokerage calculator has link to list of charges which clearly mentions this.

& you have done the wrong calculation, please do refer calculation mentioned by rahianiket1

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Hi aniket1. But then Zerodhaā€™s website says that its per day basis. Just see below:

DP (Depository participant) charges

ā‚¹13.5 per scrip per day(irrespective of quantity) debited from demat account when stocks are sold. ā‚¹5.5 per MF (irrespective of quantity) debited from demat on redemption. Charged by depository (CDSL) and depository participant (Zerodha)

It says per day. Is it wrong?

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Hi Sadhu. No I was looking to open an a/c for Equity Delivery. I was just going through the website and found this fact about DP charges. Either they charge only 13.5 rupees per scrip on selling or they charge exorbitant prices. If you are right, Zerodha has got it wrong on their website and needs to correct that ā€˜per dayā€™ line.

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When it says per day, we are trying to say irrespective of how many sell transactions you do in a day, only Rs 13.5 is charged - but it is only if you have sold stocks on a certain day. Not for everyday you held. :slight_smile:

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But "ā‚¹13.5 per scrip per day(irrespective of quantity) " is misleadingā€¦ couldā€™ve been more clearerā€¦

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May be some thing like ā€œper day of selling/tradingā€ā€¦instead of just per day

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Pl change " per day" to ā€œon a given
dayā€ to avoid ambiguity.

-Baalkee

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Suppose I sell a scrip at Rs 65 (only one unit), will I still be charged Rs 13.5?

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yes. It is per scrip irrespective of quantity

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Yes even a scrip less than Rs. 13.5 will be charged Rs. 13.5.

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And this is charged by depository not zerodha.

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Its 15.93 now including 18% GST.

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It is a sum of 2 charges here. CDSL/NDSL which is typically 6/5 rupees and then zerodha adds 8 rupees + GST. So it is not entirely charged by Depository.

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DP (Depository participant) charges

ā‚¹13.5 per scrip (irrespective of quantity), on the day, is debited from the demat account when stocks are sold. ā‚¹5.5 per MF (irrespective of quantity), on the day, is debited from the demat on redemption. This is charged by the depository (CDSL) and depository participant (Zerodha).

Hi Sandip, looks like Zerodha paid heed to what you had to say as I just copied the above from the website. Great job all around

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Hi, I just want to know if this DP charges also applies when I sell my Smallcase? I have bought some smallcases where the total number of stocks at more than 5, does this mean when I sell my smallcase I get charged 5*13.5+GST?

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YES Your calculation is correctā€¦ You are charged DP charges @ 13.5 for each title of the 5 script .