At FYERS, DP (Depository Participant) charges, also known as Demat debit charges, are calculated daily and depend on the transactions involving the sale of holdings and the available ledger balance. Here’s a detailed breakdown of how these charges are applied across different account conditions:
Accounts with Sufficient Ledger Balance:
Immediate Debit: For accounts that have a sufficient balance, DP charges are debited either on the next day of the transaction (T+1 day) or the following day (T+2 day).
Example: If you sell holdings worth ₹1,000 and incur DP charges of ₹14.75 (12.5+GST), with an initial balance of ₹1,000, the DP charges of ₹14.75 will be debited immediately, leaving you with a balance of ₹983.25.
Accounts with Debit or Zero Ledger Balance:
Deferred Impact: If your account balance is zero or negative, the incurred DP charges will reflect as a negative amount in your trading balance, signaling outstanding charges. However, no ledger entry for these charges will be made until the account balance turns positive.
Example: If your account balance is ₹0 and you incur ₹100 in DP charges, your trading balance will show ₹-100. This indicates that you need to replenish your account to cover the outstanding charges and restore a positive balance.
Ledger Balance Less Than DP Charges:
Partial Debit and Deferred Balance: When your ledger balance is less than the DP charges due, only the amount available is debited, and a ledger entry is made for this amount. The remaining deficit is reflected as a negative in your trading balance.
Example: If your account balance is ₹50 and the DP charges are ₹118, then ₹50 will be debited immediately and a ledger entry for ₹50 will be made. The remaining ₹68 will show as a negative in your trading balance, indicating that further funds are required to settle the full DP charges.
Once your account has sufficient funds, the ledger will be updated to fully reflect any outstanding DP charges. This ensures that your financial records accurately depict all your transactions.
Note: DP charges are levied per transaction and not per scrip. If you sell the same scrip in your holdings multiple times, the DP charges will be levied multiple times. Previously, DP charges were applied scrip-wise.
Say you have 50 HDFC Bank shares. If you sell them all at once, the applicable DP charges will be ₹14.75 (including 18% GST). However, if you sell them five times in batches of ten each during the day, the DP charges levied will be ₹73.75 (5 x ₹14.75).