InvestorQ : Why has CDSL slashed its DP and transaction charges drastically?
indhumathi Sayani made post

Why has CDSL slashed its DP and transaction charges drastically?

Answer
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4 weeks ago


CDSL has slashed transaction charges by up to 91% for margin pledge and re-pledge, which is supposed to go live mandatorily from September onwards. From September, the old practice of transferring shares to pool of broker will be replaced by margin pledge.

CDSL will levy a charge of Rs 5 for margin pledge or margin un-pledge involving the end investor. In addition, CDSL has also confirmed that it will only levy a charge of Re.1 for each margin re-pledge or un-pledge of margin re-pledge.

Currently, CDSL charges Rs.12 for each pledge and un-pledge set-up. SEBI has allowed trading members or clearing members to accept client securities as collateral by way of title transfer into the pool account only up to August 31, post which it will need a pledge.

Under the margin pledge system effective from Sep-20, shares in the investor's account will be pledged to the broker/TM and in turn the TM will re-pledge to the clearing corporation. This will be feasible and viable only if the pledge charges are drastically reduced, which is what CDSL has done.