A few days back, we posted an important detailed note on margins funded by Dhan - which is positions or trades that a user takes, and Dhan provides the margin in some cases. Since then, a few users have reached out to us enquiring about the DPC interest charges on margin funded by Dhan.
As you know, we’re building a user-first platform and your feedback and suggestions are invaluable to us. That’s why when you speak, we listen and make note of all the things our users send our way.
Today, we are happy to announce that there will be no DPC Interest on margin funded by Dhan when you Buy Shares in the Cash Segment against shares sold by you, which is delivery-based trades where you intend to take delivery of shares bought in your demat account for the purpose of investment. This decision is also in-line with our thought process of keeping investments free - where we have Zero Brokerage when you buy or sell in the cash segment for delivery.
Earlier Practice
Earlier, when you sold securities, we provided 80% of the sale value on T-day and 100% on T+1 day as a limit/margin to trade in line with the regulations and industry practice. However, interest charges (DPC) were applied on the margin being funded by Dhan likewise by many other brokers.
What Dhan follows from now
Moving forward, we have decided to waive off the DPC interest for delivery positions created in the Cash Segment against the early pay-in benefit when you sell stocks from your holdings.
Where will DPC continue to be Applicable?
DPC will continue only for trading positions/trades. The interest charges will continue to be applicable on positions created against early pay-in benefits. This includes:
- Positions created in the Cash Segment under the MTF product which will be launched soon.
- Positions created in the F&O, Currency, and Commodity Segments.
- Positions created in the Cash Segment against Non-Cash Collateral i.e., against the value of margin pledged securities.
Another small thing that we would like to mention is that, unlike the industry practice where few broking platforms deduct/post DPC charges every day, on Dhan, we post interest only once a week.
We hope investors on the Dhan platform enjoy this small benefit that we are adding to, which is also in line with our thought process of keeping Delivery based trades in the Cash Segment at Zero Brokerage.
Keep Investing & Trading on Dhan.
Regards,
Rajesh Jain
