DP Charges for BTST Transactions at FYERS

Do I need to pay DP charges for Buy Today Sell Tomorrow (BTST) transactions at FYERS?

Yes, from 19th July 2021 onwards, DP charges will apply to BTST trades due to changes in the settlement process. Previously, DP charges were not levied on such trades. Let’s delve into understanding the impact of these changes and how DP charges have become applicable.


Old Settlement Process (Before 19th July 2021):

Suppose you purchased 1000 shares of HDFC Bank on 19th May (Wednesday) and sold them on 20th May (Thursday) resulting in a BTST transaction:

  1. Shares of HDFC Bank acquired on 19th May would be delivered to the FYERS Pool A/C by the Clearing Corporation on 21st May (T+2 Days).
  2. To simplify the process and avoid the continuous transfer of shares, these shares would move directly from our pool account to the Clearing Corporation through Early Payin.
  3. This meant DP charges were not applicable since there wasn’t a requirement to credit/debit shares from the client's demat account.

However, this system posed challenges, especially when BTST trades were executed on the Ex-date of corporate actions. The brokers would unintentionally receive dividends or bonus/split shares from BTST stocks because the Clearing Corporation recognised the broker as the share owner. This process was cumbersome and often led to confusion.


New Settlement Process (Post 19th July 2021):

A directive from NSE on 6th May 2021 introduced a more streamlined settlement process. Instead of moving shares from the client's Demat to FYERS' pool and then to the Clearing Corporation, clearing members can now ‘EPI Mark’ securities directly from the client’s demat account. 

Using the previous HDFC Bank example:

  1. Shares bought on 19th May will now be credited to your Demat account on 21st May, post-receipt from the Clearing Corporation.
  2. Once credited, these shares will be 'EPI Marked' for delivery towards the sale transaction done on 20th May.
  3. These marked shares will be debited on the next clearing day and settlement finalised.
  4. Consequently, DP charges will be applicable as shares are credited to your Demat on the T+2 day and debited on T+3.

Advantages of the New Process: 

  1. Direct credit of dividends to your bank, eliminating reconciliation hassles.
  2. Bonus and split shares will be credited to your Demat.
  3. Tax Deducted at Source (TDS) on dividends will be associated directly with your PAN.
The DP Charges for BTST stand at ₹12.5 + GST, encompassing both CDSL & FYERS DP charges.

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