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How DP charges are charged in Flattrade?

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Updated
ByManoj

Flattrade charges a flat fee of ₹20 per debit transaction plus applicable GST. Please note, this fee is levied by the depository (CDSL) and the depository participant.

Understanding DP charges:

At Flattrade, we perform an Early Pay-In (EPI), which means we deliver securities (for sales) or cash (for purchases) to the exchange’s clearing corporation before the settlement date, usually on the same day as the trade (T), rather than T+1.

Specifically, we transfer securities or funds to the exchange within 3 minutes, a very rapid and notable achievement among brokers.

Implications of Early Pay-In for DP Charges:

DP charges are applied when shares are sold, debiting the amount from your Demat account. At Flattrade, this fee is ₹20 per Debit Transaction plus applicable GST. These charges also apply to multiple orders executed after the initial 3-minute window.

For example, if a user named X places multiple orders within a 3-minute window, no additional DP charges are levied. However, if X places multiple orders at different times—say at 10:00 AM, 11:00AM, and 12:00PM. Each transaction will incur a DP fee of ₹20 plus GST. For further clarification, please contact our team regarding these charges.

For example:
1. Chronological Sequence of Events (Example Scenario Based on System & Depository Logs)
A sell order is placed.
EPI is submitted for the same quantity.
The order is later cancelled.
A new sell order is placed for a higher quantity.
A second EPI is submitted for the remaining free shares.

2. Reason for Two EPI Submissions (Example: 25 + 15 Shares)
The first EPI, once submitted, cannot be reversed immediately, and the shares remain blocked with the Clearing Corporation until End of Day (EOD).
When a later sell order is placed for a larger quantity, only the unblocked balance is available. Therefore, a second EPI is generated for the remaining shares required.
This results in two separate EPI instructions, which in turn result in two demat debit entries.

3. Why EPI Must Be Submitted Immediately for All Sell Orders
Under the SEBI Peak Margin Framework, even delivery sell trades attract VAR/ELM margin until the Clearing Corporation receives shares.
Immediate EPI submission prevents unnecessary margin blocking and avoids margin shortfall situations.

4. Role of Depository and Clearing Corporation – Why Confirmation Is Critical
For an EPI to be effective, the Clearing Corporation must receive confirmation from the depository that the shares have been successfully blocked.
Until this confirmation is received:
The sell trade continues to attract a margin
VAR/ELM margins may be applied
Member PRO funds may be blocked
Margin shortfall penalties may arise
Confirmation allows the Clearing Corporation to release margin requirements.

5. Why Two DP Charges Were Applied
Depositories levy DP charges per demat debit instruction per ISIN per day.
EPI 1: First debit
EPI 2: Second debit
Tariff Example: ₹20 + 18% GST = ₹23.60 per debit
Total for two debits = ₹47.20.

6. No System Error or Overcharging
Both demat debits match the EPI submissions.
Charges are statutory, rule-based, and system-generated.

7. Request for Closure
The charges and debit entries are correct as per regulations and system behaviour. Requesting the case to be closed accordingly.