Why is the DP charge applied for Buy Today Sell Tomorrow (BTST) trades?

DP charges are applicable for Buy Today Sell Tomorrow (BTST) trades due to a change in the settlement process. Earlier, shares bought and sold on BTST were credited and debited from the broker's pool account. Now, shares are credited and debited from the client's demat account, even for BTST trades. Since shares are moved out of the client's demat account, DP charges of ₹13 + 18% GST are applicable.

If the primary (first) holder of the account is a woman, the DP charges will be reduced to ₹12.75 + 18% GST. The charges are applicable per day and per stock, regardless of the quantity sold.

The advantages of crediting and debiting shares from the client's demat account are as follows:

• For corporate actions like bonuses and splits, the shares are directly credited to the client's demat account. Earlier, they were credited to the broker's pool account, and the broker was responsible for allocating them to the client.
• Dividends are directly credited to the client's bank account. In case of any TDS on dividends, the dividend issuing company will file against the client's PAN and would reflect in the tax credit statement (Form 26AS) instead of it being passed on from the Broker's PAN.