When opening a demat account with the broker, then we do consider many different fees and charges but there are certain fees of which many investors are not aware of. One such is DP charges. So, if you are looking forward to taking trading services of JM Financial, then here is the detail of JM Financial DP Charges.
Let’s begin with a little understanding of what these charges are.
What are DP Charges in JM Financial?
When it comes to understanding the meaning of DP charges, then these charges are debit transaction charges charged by the depository. Now as the name implies, these charges are only charged on the debit.
Thinking about what kind of debit?
Well! it is the shares holding in your demat account. So, whenever you sell off shares from your demat account, you are charged a specific fee. Now unlike the JM Financial brokerage charges, these charges are not charged on the turnover value, instead, it is charged per scrip per day.
JM Financial DP Charges are:
How JM Financial DP Charges are Calculated?
Let’s see with an example how actually DP charges are imposed on trade.
Suppose an investor named Anurag has a JM Financial Demat account and invested in 300 shares of TVS motors. On one fine day, he sells 100 shares in the morning and another 100 shares later on the same day.
Now the DP Charges are charged per scrip per day. So how much does he have to pay?
Here the charges are charged per scrip per day and here Anurag did two transactions but of the same shares, then the DP charges charged are equal to ₹13.
Now let’s consider another condition, where Anurag sold 50 shares on one particular day and another 50 shares on the next day. Here the transaction of one scrip is done twice and that too on two different days, hence the DP charges would be equal to ₹26.
Here the point to be considered is that these charges are only charged on the sell transaction i.e. delivery trades. For intraday trading or other charges where no such debit of shares takes place from the demat account, no DP charges are imposed.
DP charges are levied by a broker but it is a source of income for both DP (Depository Participant) and depositories (CDSL and NSDL).
So you have seen how DP charges remain hidden so it is important to know about DP charges of JM Financial before opening a Demat account with them.
These are other various charges apart from DP charges and it is equally important for you to know about them.
Want to begin your investment journey? Get in touch with us now and we will assist you in choosing the right stockbroker and in opening a demat account online for FREE!