Yes, Buy Today Sell Tomorrow (BTST) trades incur Depository Participant (DP) charges. These charges are applied because the shares are moved from the client's demat account.
Explanation
- DP charges are levied when you trade securities from your Demat account.
- The charges are applied per day and stock, regardless of the quantity sold.
- DP charges are usually fixed and are divided between the broker and the central depositories, NSDL and CDSL.
- The charges are added to the ledger and are not shown on the contract note sent by the broker.
Example
- If you buy 100 shares of a company on Monday and sell them on Tuesday, you will incur DP charges.
- The shares will be transferred to your Demat account on Wednesday and debited from your account on Thursday.
- Since the shares remain in your Demat account for one whole day, you must pay the DP charges.
