Before we start our discussion about Upstox DP charges, it is highly important to understand what DP is and what are the DP charges?
If you are an active investor, then you must be well aware of Upstox which was formerly known as RKVS. However, let us give you a short brief about Upstox- one of the well-renowned discount brokers in India.
With a clientage of more than 1, 80,000 across the globe it also delivers impeccable NRI trading services.
Furthermore, Upstox provides its versatile services for beginners and advanced level traders through their desktop and mobile app. Also, you can get in touch with them for demo purposes which are given free of cost.
Now since you got adequate information about Upstox, let us discuss the Depository Participant- its meaning, types, importance, and Upstox dp charges.
Upstox Depository Participant
Now, a question might be arising in your mind: What is depository participant and who is depository participant?
The depository is a central institution or body that helps in keeping all the transactions and shares safe when trading in segments such as equity, derivatives, mutual funds, Futures and Options (F&O), debentures, and commodities.
Hereby, the main purpose of the Depository is to hold the essentials or securities of an investor in a dematerialized form.
Also, when you tie-up with one of the above depositories you do not require to go through the paper process again and again. Once you open a Demat account with a Depository, it keeps all the important securities safe without any hassle and shares all the required information automatically with the other parties.
NSDL deals with National Stock Exchange (NSE) and CDSL is promoted by the Bombay Stock Exchange (BSE). However, both government agencies perform the same functions and duties.
As per May 2020 statistics, more than one and a half crore investors’ accounts have been registered with NSDL.
-as per data on NSDL website
There are some brokers or agencies that link between investors and depositories and these mediators are known as Depository Participants. These Depository Participants are required to be linked with SEBIand Depositories to step in the trading process and one such is Upstox.
In layman terms,
Bank account with a bank: Keeps your money safe
A Demat account with a depository participant: Keeps your shares, bonds, shares and securities safe
Why is there a need for a Depository Participant
Depositories are crucial in trading since they eliminate all the possible dangers linked with the handling of physical securities in hand.
Upstox DP charges are required to pay through the Upstox Demat account so that the depositories can provide their valuable services to the investor which is keeping all the shares or stocks in the de-mat form to protect them from theft, damage or loss.
Depository Participants ensure fast transaction and efficient trading since all the process is carried electronically.
Upstox DP charges
Upstox too, like other brokers, impose certain DP charges against each transaction done from the Upstox Free Demat Account to protect and safeguard your assets through the help of Depositories.
Upstox DP charges for each time you sell shares in Demat account are:
Rs. 18.5+ GST @ 18% = Rs. 21.83 (CDSL charges)
Upstox is a discount broker in India and charges a very genuine price for its versatile trading services.
Through Upstox Demat account, an investor or a trader can protect the securities by keeping them in dematerialized form through depositories. Since, both the depositories are identical so it is not challenging to decide one.
Upstox Charges DP F&Q’s:
Here are some of the questions asked by the investors or traders related to Upstox DP.
What is my Upstox DP ID?
Upstox DP ID is shared with you, which is generally the 16 digit Demat account number, once you finish the account opening process
How to close the Upstox Demat account?
You can close your Upstox Demat account through an online process. Go to the “ Download Reports” section on the Upstox website. Print the “Demat Account Closure form” and fill all the given details by hand. After filling, courier the same to Upstox, Head office, Connaught Place, New Delhi.