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Why was I charged the DP charges twice for the same sale transaction?

When you sell securities from your holdings, the stocks are earmarked for delivery to the clearing corporation and on the same day. The earmarked shares are then debited from your Demat account on the settlement day ie., two days after the trade day (T+2). The DP charges are collected on the day the shares are earmarked for delivery.

If you sell shares partly from your Demat holdings and partly through a BTST (Buy Today Sell Tomorrow) transaction, then the DP charges are levied twice since the shares are earmarked and debited separately from your Demat account.

Let's take the following example -

  1. You hold 100 shares of Reliance industries in your DEMAT account
  2. On Monday, you purchase an additional 75 shares of Reliance. The total number of shares is now 175.
  3. On Tuesday, you decide to sell 175 shares of Reliance Industries
  4. 100 shares that were already available in your Demat will be earmarked for delivery on Tuesday evening, and therefore DP charge will be levied
  5. On Wednesday (T+2 with respect to Monday), the 75 shares bought on Monday are delivered to your Demat account and immediately earmarked for delivery. Hence, the DP charge is levied for these 75 shares. Please note, earmarked shares won't be visible in Kite/Console.
  6. On Thursday (settlement day for sale transaction on Tuesday i.e. T+2), there will be two debit transactions in your Demat account i.e. one for 100 shares and another for 75 shares.

As there are two instances of earmarking and debit of the security from your Demat account, the DP charges are also levied twice.